Chapter 4. Fund Types
1. Understand different fund types.
2. Learn why there are different fund types.
3. Learn which fund types are growing in popularity and why.
Learn more about different fund types: www.fidelity.co.uk/investor/funds/funds-explained/types-of-funds.page
Definition: Investment funds are collective investment schemes and are of two types: open-ended and closed-ended funds. These funds can be managed actively or passively.
Note: While the term ‘mutual’ may refer to both types of scheme, it is more common to describe open-ended funds as mutual.
Actively managed fund: A fund where the portfolio manager makes security-selection decisions on the basis of better information or better investment ...