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:
“True contentment is a thing as active as agriculture. It is the power of getting out of any situation all that there is in it. It is arduous and it is rare.”
—Gilbert Keith Chesterton (1874–1936)
“No officer should be required or permitted to take part in the management of political organizations, caucuses, conventions, or election campaigns. Their right to vote and to express their views on public questions, either orally or through the press, is not denied, provided it does not interfere with the discharge of their official duties. No assessment for political purposes on officers or subordinates should be allowed.”
—Rutherford Birchard Hayes (1822–1893)