- Active funds are run by fund managers who aim to deliver a return higher than the market average. Fund managers will have access to extensive research to help them choose their investments. There is the potential for higher returns than a passive fund, and hence the fees charged are generally higher.
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- These are the fees paid when investing in a fund which goes to the custodian of the fund.
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- Exchange-traded funds are funds that can be traded on the stock exchange much like stocks. Most ETFs are passive funds, and as a result, the fee charged will typically be lower than that of an active fund.
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- A fund pools together money from individual investors, and spreads it across various investments. It is managed by a fund manager, who will aim to pick the best investments so that your money grows ahead of the average rate. By spreading your investments across assets, funds enable you to access opportunities more easily than if you did it yourself, while also spreading the risk.
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- These are the fees associated with buying or selling stocks and shares.
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