Active Mutual Funds vs Passive Mutual Funds

Описание: Active Mutual Funds vs Passive Mutual Funds

Passive funds tend to be approximately 0.8% less expensive than active funds. Which means that if an active fund fails to generate returns exceeding this cost differential, it may not provide a clear advantage over its passive counterpart in terms of cost-efficiency. As Passive mutual funds primarily employ a "buy and hold" strategy, seeking to closely mimic benchmark index compositions with minimal portfolio adjustments, it leads to the elimination of human bias and low cost for an investor. Index Funds are not as exciting as active funds. But they do make up for this boredom with their long term productivity.

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