Tradersguruji

  Comparing Actively Managed Funds vs. Passive Investing. Active investing is like betting on who will win the Super Bowl, while passive investing would be like owning the entire NFL, and thus collecting profits on the gross ticket and merchandise sales, regardless of which team wins each year. Active investing means you (or a mutual fund manager or another investment advisor) are going to use an investment approach that typically involves research such as fundamental analysis, micro, and macroeconomic analysis and/or technical analysis because you think picking investments in this way can deliver a better outcome than owning the market in its entirety. Using the NFL Investment Analogy Using the NFL analogy, you would study all the players and coaches, go to preseason training, and based on your research make an educated bet as to which teams would be on top for the year. Would you be willing to bet your money on your ability to choose correctly? An active inves...