Question

active mutual funds: please choose the correct answer from the following choices, and then select the submit answer button. answer choices involve people actively investing their own money in many firms. involve a manager investing one customer's money in many firms. tend to charge higher-than-average management fees. are automated to mimic a broad stock market index.

Answer 1

A professional portfolio manager or team of managers selects the underlying investments for the portfolio in an actively managed fund. In fact, one of the reasons you would choose a specific fund is to gain access to the experience of its professional managers.

What is the Active mutual fund?

• An actively managed fund is one in which the fund manager is more involved in decision-making and actively monitors the addition and removal of stocks and bonds from the mutual fund's portfolio.

• The fund management cannot influence the movement of the underlying assets in passively managed funds.

• Choosing mutual funds with portfolio managers who select investments based on an independent evaluation of their worth is an important component of active investing; in other words, they seek to select the most appealing investments.

• Active managers typically strive to "beat the market" or outperform predetermined benchmarks.

• When things go well, actively managed funds have the potential to consistently outperform the market, even after fees are paid.

To learn more about Active mutual fund refer to:

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