Active Fund

Active Fund Service By Gk Mf invest Pvt ltd.

Any fund which is actively managed by a fund manager is known as an active fund. The fund manager actively takes decisions on how to invest a fund’s capital and does the trading of stocks.

indian family 2021 08 28 01 51 28 utc 1

What is an Active Fund?

Any fund which is actively managed by a fund manager is known as an active fund. The fund manager actively takes decisions on how to invest a fund’s capital and does the trading of stocks. The primary job of an active fund manager is to brainstorm and pick profitable investments, intending to execute a stock that outperforms the fund’s specified benchmark or index. Actively managed funds generally charge relatively high fees, because together with analysts and researchers, fund managers actively buy, hold and sell stocks to achieve maximum returns.

Pros & Cons of Active Fund

Pros

Cons

Get Started Today
We at Gk Mf invest Pvt ltd. serves the people ,with their desired products
New Delhi , India
Our Services are available across Pan India

Benefits of investing in active funds

A fund manager’s expertise, experience, and judgment are employed by investors in an actively managed fund. An active manager who runs an automotive industry fund might have extensive experience in the field and might invest in a select group of auto-related stocks that the manager concludes are undervalued.

Active fund managers have more flexibility. There is more freedom in the selection process than in an index fund, which must match as closely as possible the selection and weighting of the investments in the index.

Actively managed funds allow for benefits in tax management. The flexibility in buying and selling allows managers to offset losers with winners.

The ability to outperform: Studies show that most actively managed funds underperform passive funds over the long haul, primarily because of the difference in fees. But it’s a mistake to categorize all active funds as too costly to outperform.

Credit smarts: The advantage of active funds over passive funds can be debated in stocks, but there is one corner of the asset management industry where almost everyone agrees active management is better: bonds and fixed-income investments.

 

Active funds can be opportunistic: Passive funds typically employ rules-based investment strategies in which investments are effectively picked by a checklist. These rules generally work, but when everyone rushes into one popular trade, it can create some imbalances that wouldn’t necessarily happen if passive funds played a smaller role in the market.

Liquid Funds

One of the safest funds that provide a reasonable rate of return

Hybrid Funds

Invests in different asset classes for a diversified portfolio

Gilt Funds

Debt fund that invest in government securities

Equity Funds

Fund that primarily invests in stocks

Importance of active funds

There is plenty of controversy surrounding the performance of active managers. Their success or failure depends largely on which of the contradictory statistics is quoted.

Over the 10 years ended in 2017, active managers who invested in large-cap value stocks were most likely to beat the index, outperforming by 1.13% on average per year. A study showed that 84% of active managers in this category outperformed their benchmark index before fees were deducted.

Address

House No.103 Daulatpur Village , New Delhi 110043
New Delhi,India

Contact Details

Phone No: 9910266310
Email: help@gkinvest.in
Pay Online

Online payment option available in some cases

Investment Update

Get your Investment update

Contact us

Connect with us for any help on personal finance

Review Your Investment

Get help in reviewing your current investments

Gk Mf invest Pvt ltd.

Our Services are available across Pan India

Need a personalized solution?

Gk Mf invest Pvt ltd. is ready to cater
all your Insurance Requirements

Customer first

Customers and their needs are our first priority. All our insurance plans are tailor made

Community Focused

We give back to our community and get involved with the charities we support.

Passion

We go the extra mile to exceed your expectations, no matter what you need.

Experienced Agents

With extensive experience, we understand what it takes to bring you quality coverage.

We at , Gk Mf invest Pvt ltd. serves the people ,with their desired products.

New Delhi , India

House No.103 Daulatpur Village , New Delhi 110043
New Delhi,India