What is an active fund?

An active fund is an investment fund that is actively managed by fund managers who make strategic choices to outperform the market. This means that the fund managers actively select shares that they expect will perform better than average.

The fund is usually intensively monitored by analysts, especially when it is not frequently traded. If it concerns a share, it is also referred to as a trading share.

This is in contrast to a passive fund, which simply tracks an index without active selection.