There are some instances where managed funds might make sense. First of all, you might want to invest in a specialist area which doesn't have an index to track. Perhaps you fancy putting some money into technology companies, but don't fancy picking the shares yourself. Maybe you want to put some of your savings into shares in somewhere like Far-East Asia, which doesn't really have a suitable index to track. If there is no index, then there are no trackers, and if Fools want specific exposure to this sort of thing, they may need to fall back on managed funds.
Many investors are still wary of previously high-flying tech stocks, even at much reduced prices.
But this Fool decided it was time to buy shares in Baltimore Technologies. Foolish Bookshop UK Investment Guide Search Books Pop. Copyright 1998-2001, The Motley Fool Limited. All rights reserved. This material is for personal use only.