Actively managed funds

Actively managed funds are managed investment portfolio where the manager of the fund takes aim to outperform a particular benchmark. An actively managed fund constantly buys or shorts securities as needed to outperform an index like the S&P 500. Managers of actively managed funds rely on market timing or the technical perspective of a security. These funds acquire securities that has recently pulled back from a price high. It also shorts securities that are set to fall in value.