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FAQs
Subject
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Mutual Fund/ETF
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Passive Fund
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Passive Fund
Difference between Passive Fund and Active Fund
Date: 13 APR
Answered By: Tasis Management
Question
How is a Passive Fund different from an Active Fund?
Answer
• Passive Fund: Follows an index constituent, no stock picking hence lower cost.
• Active Fund: Fund manager selects stocks to outperform the market, higher cost due to highly paid manpower for qualitative and quantitative research analysis and continuous monitoring of the portfolio.
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