There’s a huge amount of debate in the world of financial planning when it comes to active versus passive investment funds. Actively managed funds, where the fund manager uses their skill and experience to select a portfolio of companies, can outperform or underperform their chosen benchmark. On the other hand, passive investment funds, often called index trackers, seek to deliver the return of a chosen index of companies. I’m not going to get into the pros and cons of active or passive funds here; that’s a video for another day. Instead, this video is all about the things to think about when picking actively managed investment funds in 2021. I’m going to share 5 factors to consider.
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