WHY ‘ACTIVE’ FUNDS REMAIN A GOOD BET
May 29, 2021
3 minutes
-Avneet Kaur
Most actively managed mutual funds have underperformed their benchmarks in the past few years. Seven of the top 10 performing large cap mutual funds in the three- and five-year periods are passively managed funds, such as ETFs (exchange traded funds) or index funds. A passive fund is a type of mutual fund that religiously tracks a market index to fetch maximum gains. Unlike an active fund, the fund manager of a passive fund does not actively choose what stocks it will include. As a
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