Active Fund Vs Passive Fund: Know the major difference between the two!
Many people who invest in mutual funds are not aware of active and passive funds.
People often invest money through SIP, but if they are asked in which fund they are investing the money, they are unable to tell.
Today there are two ways of investing in mutual funds, active funds and passive funds.
Active funds are those funds which are managed by the fund manager himself.
That means in this the experts decide in which share to invest and which one to exit.
Passive funds are those funds in which the fund manager does not decide which companies will be in the fund
These are the funds that move according to the market. These include index funds, ETFs, etc.
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