Managed funds pool together the money of individual investors and use it to buy assets such as shares, bonds or cash. Different funds have different objectives so it’s important to assess whether they match with your objectives or not.
Unique feature of managed funds is that you can leave the buying and selling decisions on the manager of the fund, whose job it is to use investors’ money to generate positive returns. You can invest in both actively and passively managed funds. Main objective in an actively managed fund is to outperform the market returns whereas a passively managed funds is the one which aims to match the performance of a benchmark, rather than outperform it.
At the end of the course, you would be able to understand:-
- What is a Managed Fund ?
- Types of Managed Funds
- Mutual Fund
- Exchange Traded Fund
Exchange Traded Fund