Active Management
Most open-end funds are actively managed, meaning that a portfolio manager picks the securities to buy, although index funds are now growing in popularity. Index funds are open-end funds that attempt to replicate an index, such as the S&P 500, and therefore do not allow the manager to actively choose securities to buy.
Read more about this topic: Open-end Fund
Famous quotes containing the words active and/or management:
“The sense of an entailed disadvantage—the deformed foot doubtfully hidden by the shoe, makes a restlessly active spiritual yeast, and easily turns a self-centred, unloving nature into an Ishmaelite. But in the rarer sort, who presently see their own frustrated claim as one among a myriad, the inexorable sorrow takes the form of fellowship and makes the imagination tender.”
—George Eliot [Mary Ann (or Marian)
“People have described me as a “management bishop” but I say to my critics, “Jesus was a management expert too.””
—George Carey (b. 1935)