Actively managed Funds: An actively managed investment fund is a fund in which a manager or a management team makes decisions about how to invest the fundʼs money
2. Passively managed Funds: A passively managed fund, by contrast, simply follows a market index. It does not have a management team making investment decisions.
An Index Fund is a portfolio of stocks or bonds designed to mimic the composition and performance of a financial market index. Index funds have lower expenses and fees than actively managed funds. Index funds are an example of a passively managed fund.