Passive vs Active Fund Management: What’s the Difference?
Index Funds and Mutual Funds Explained.
Thinking of investing some of your savings in the financial markets? How about using managed funds?
Do you know the difference between Active & Passive Fund Managers?
This investing tutorial will explain this difference and some key ideas behind the two forms of asset allocation.
These lessons will be applicable to Mutual Funds (Active Investing) & Index Funds (Passive Investing).
So what’s included in the explanatory video?
* The Key Difference between Passive & Active Management
* Issues, Benefits & Drawbacks of Active Funds
* Issues, Benefits & Drawbacks of Passive Funds
* And a Review
If you’d prefer to read a description rather than watch a full lesson, here is the key idea:
The key difference between active & passive fund management investing (mutual fund and index fund investing)….
Active Funds; Actively try to beat a benchmark performance (such as an index) by picking individual groups of stocks that will outperform the market.
Passive Funds; Attempt to mirror the performance of an index by holding groups of stocks that reflect the underlying index as per its constituents and their relative proportion within the index.
Active funds (mutual funds) are ‘actively’ trying to beat the market.
Passive funds (index funds) are ‘passively’ trying to mirror the market.
Active funds (mutual funds) rely more on security analysis.
Passive funds (index funds) rely more on administration.
Active funds (mutual funds) have higher costs with the opportunity for higher returns.
Passive funds (index funds) have lower costs and accept market returns.
Saving now and wanting to invest soon, but don’t know where to start? Check out the tutorial and take one of your first steps into funds management with active mutual fund or passive index funds.
This video was brought to you by accofina.
Other accofina Products & Services:
1) Ratio Analysis Calculators & Formulas
2) Capital Budgeting
3) Time Value of Money Calculators & Formulas
4) 2-Year Monthly Cash Flow Forecast
5) Retirement Planner
1) Accounting: Foundation Inputs & Outputs
2) 331 Great Quotes for Entrepreneurs
1) Ratio Analysis Fundamentals
2) Balance Sheet Basics
3) Income Statement Basics
4) Cash Flow Statement Basics
5) Financial Statement Basics
6) Corporate Finance Fundamentals
a) Amazon Author Page:
b) Goodreads Author Page:
1) Ratio Analysis & Management Accounting Calculators
2) Ratio Analysis & Management Accounting Calculators ‘Lite’
3) Profitable Pricing
a) Bidi Capital (accofina) Apps
1) Financial Statement Fundamentals
a) Udemy Instructor Page
b) YouTube Channel
Free Online Calculators:
Social Networking & Contact:
Tweets by accofina