The Battle For Returns: Active Management Versus Passive Management

AUM Trend in 2023

Investors should understand the specific nature of the funds they are considering whether they are active or passive. Some investors prefer the aggressiveness of active funds and are willing to pay higher costs for the potential of earning extra returns. On the other hand, investors who value simplicity and are cost-conscious may find passive funds more suitable. The article highlights the pros and cons of both channels of investment

In the dynamic world of investment, mutual funds have emerged as a popular choice for investors seeking a diversified and professionally managed portfolio. One key decision that investors face is choosing between actively managed funds and passively managed funds. This decision can significantly impact the long-term performance and risk profile of an investment portfolio. Actively managed funds involve a hands-on approach, where fund managers make strategic decisions to buy or sell securities with the aim of outperforming the market or a specific benchmark.