Active index fund

This pertains to fund managers that are trying to replicate or outperform the current performance of a standard benchmark such as the S&P 500 or the Nikkei 225. Active index funds regularly change the basket of equities on their portfolios. Compared to passive funds, the regular buying and selling of stocks translates into higher taxes accrued to its clients. However, most active index funds generally out-performs the market if well managed.

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