Active fund management

Every day we see reports on how stockmarkets are performing. It's easy to get concerned about our investments if we hear "The market fell today" on the evening news!

But exactly what is "the market?" The FTSE 100 or the S&P500 – these are both indices that average the performance of a large number of companies. Within a stockmarket, individual companies can perform very differently to the average. Active fund managers aim to choose companies that will perform well in the long-term, whatever the short-term performance of the overall stockmarket. Passive or index managers will buy a basket of shares reflecting the whole market.

The performance of an actively managed fund will depend on the individual fund manager’s success in picking the winners and avoiding the losers. The performance of passive funds will reflect the performance of the overall market. Remember past performance is not a guide to future results.

The graph below shows the best ten and worst ten performing stocks over the period you select. It does not reflect the performance of any individual fund.

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