Enable are independent financial advisors who like to help people make the most of their money. Choosing how to invest from the literally thousands of investment funds is half the battle. Whether you want a UK, specialist, tracker or exchange traded fund (ETF), deciding whether to invest in an actively or passively managed fund can help narrow down the choice.
Active management is when an investment fund is actively managed by a professional fund manager. The fund manager decides on the asset allocation of the fund, as well as when and what investments to buy and sell (subject to the fund's rules and stated objectives). The fund manager's decisions will be based on research and they even visit the companies they are thinking of investing in sometimes. The fund manager can target specific areas that are outperforming their sector or that may appeal to investors with specific interests, the funds aim is to outperform the stock market or investment sector they invest in.
Passive management on the other hand is when an investment fund tracks a particular market or index such as the FTSE All Share index. The fund is managed by buying shares in most or all of the companies which make up a particular index. The aim is to replicate, rather than outperform, the performance of that index. Passively managed funds include tracker funds and exchange traded funds (ETFs). At Enable of Bishop’s Stortford our IFA’s can help you look more closely at how to manage your funds.
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