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Active funds are managed by professionals who aim to outperform the market by selecting specific investments, while passive funds simply track a market index. Studies have shown that over the long term, passive funds tend to outperform active funds due to lower fees and consistent performance.

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5mo ago

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What is meant by passive instrument?

A passive instrument is a financial instrument that does not require active management by an investment manager. Examples include index funds or exchange-traded funds that aim to replicate the performance of a specific market index without selecting individual securities. These instruments typically have lower fees compared to actively managed funds.


How can someone compare mutual funds?

Someone can compare mutual funds by using a MarketWatch tool for mutual fund comparison, Smart Money fund compare, and analyzing mutual funds at finance in yahoo.


Where can one compare mutual funds?

"There are a lot of places that can compare your mutual funds online, some of which being Scotttrade, Smartmoney, Fidelity and Merrill Edge. They all have tools available for you to use."


What is the importance of index fund?

Index funds offer the investor a low-cost, transparent and near market matching performance (less expenses). They are often used as a means of diversification giving the average investor access to a segment of the market without the risk or costs from actively managed mutual funds. Many investors use a similarily invested index fund to compare the performance of actively managed funds. An example of this would be to compare an S&P 500 index fund, invested in the laregst companies in the market against a large-cap mutual fund that is actively managed.


What websites help one learn how to compare mutual funds?

Information on how to compare mutual funds is freely available online. The Reuters and Bloomberg websites carry a wealth of jargon-free information on the subject.


What are the benefits and safety of conservative mutual funds?

Use a website like Share Builder to compare different types of mutual funds.


What are some ways to measure the performance of mutual funds?

There are thousands of different mutual funds available to investors and their performance is reported to shareholders in quarterly and annual reports. The performance of most mutual funds can also be found on financial websites.The most common ways to measure the performance of a mutual fund is to compare it to a broad market index such as the S&P 500 or to another index category that closely mirrors the investments held by the mutual fund. For example, if examining the returns of a gold mining mutual fund it would not make sense to compare investment returns to the S&P 500 since a gold mutual fund focuses on a narrow market sector related to gold mining shares and/or the price of gold. In this case an investor would be more interested in the relative performance of his gold mutual fund compared to other gold mutual funds or to an index such as the Market Vectors Gold Miners ETF (GDX) that measures returns of the entire gold mining industry.


How to do Mutual funds performance analysis on excel sheet?

can anybody help me with this.


Where can one obtain the latest figures in relation to the performance of Fidelity Funds?

One can obtain the latest figures in relation to the performance of Fidelity Funds from the official website. One can also get this from money cnn website.


What is the best way to compare mutual funds?

There are several ways to compare mutual funds. The first is to contact a financial planner/professional and have them do it for you. There are also tools you can download and use (from Trow Price for example) in order to do the comparison yourself.


What is the difference between and IRA trustee and an IRA Custodian?

Custodian has passive control vs. a trustee who can invest, funds etc.


Where can I compare mutual funds?

Scottrade has a really good mutual fund center that compares a huge number of funds. There is a Vanguard Report that gives the best and worst mutual funds and it's free.