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:
“Many writers who choose to be active in the world lose not virtue but time, and that stillness without which literature cannot be made.”
—Gore Vidal (b. 1925)
“The management of fertility is one of the most important functions of adulthood.”
—Germaine Greer (b. 1939)