Actively Managed Funds

Video Transcript

"This is financial adviser Patrick Munro, talking about what is an actively managed fund. An actively managed fund is different than a passively managed fund. Actively managed fund really means that there's a dedicated fund manager who will take the mission statement of a fund, be it focused on oil, real estate, precious metals, whatever the fund is focusing on, and that manger will actively buy and sell stocks in the wider market place, in an effort to to dry profit for that fund. This is a very high paced activity, thus the name actively managed funds. And it really reflects the talent of the fund manager who's doing the job. And it can relate to a great story for the people that invest the money with a good fund manager, who is actively pursuing great opportunities in the market place. But more often than not, the fund manager can slip up and lose investment capital. Always be aware as an investor that past performances are no indication of future value, and you can lose your money. It's all about how active the fund manager is, and how good he is. This is Patrick Munro financial adviser, talking about actively manage funds."