What is the goal of active funds?

The primary goal of an active fund is to generate higher returns than the market. That’s why experienced fund managers are entrusted to manage the underlying assets of these funds.

Do active funds always outperform passive funds?

No, active funds do not guarantee outperformance. The success of active funds depends on the strategy adopted by the fund manager, and largely on market conditions.

Are active funds suitable for beginners?

Yes, beginners may consider investing in active funds, particularly if they prefer professional management instead of deciding where to invest themselves.

What is the expense ratio in active funds?

The expense ratio in an active fund is the fee that the fund charges to manage your investments. Usually, the expense ratio is higher for active funds due to the research and active management involved with their performance.

How should I choose an active fund?

p>When you choose an active fund, consider factors like historical performance, consistency, and the experience of the fund manager. Also, factor in the risk-adjusted returns and expense ratio to keep costs manageable.