6 Questions to Ask Your Active Fund Before Investing

If you choose active management, it's important to make sure you're getting your money's worth. The following are key questions investors need to ask when choosing active funds

Adam Zoll 16 June, 2015 | 10:30AM
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All this week we are running a Guide to Active and Passive Investing to help you, the investor, make smart choices for your portfolio.

There was a time, years ago, when choosing an actively managed mutual fund seemed almost redundant. In fact, if you'd asked most investors back then why they chose an active fund over a passive fund, they might have wondered what you were talking about and remarked, "Aren't all funds actively managed?"

Today, of course, the choice is clearer. The growing popularity and prevalence of tracker funds and exchange-traded funds – driven, in part, by the fact that they tend to be cheaper to own than actively managed funds – makes using active funds seem more like a conscious decision than in years past.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Adam Zoll  is an assistant site editor with Morningstar.com, the sister site of Morningstar.co.uk.

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