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:
“Things happen to us, all the time. It was like that for a century, and it is again. It’s not like here: People always do things, because you are born with it; you are brought up in this spirit, the active approach to life: “Stand up and go.” We were not. We were always passive in our lives.”
—Natasha Dudinska (b. c. 1967)
“Why not draft executive and management brains to prepare and produce the equipment the $21-a-month draftee must use and forget this dollar-a-year tommyrot? Would we send an army into the field under a dollar-a-year General who had to be home Mondays, Wednesdays and Fridays?”
—Lyndon Baines Johnson (1908–1973)