In an index fund portfolio, the index applies two to three rules to a pre-defined universe for stock selection and weight allocation. In an active portfolio, the basis of fund manager’s decisions is the ground-up criteria. It may be different for different stocks. Just like an investor would want to diversify amongst two funds —basically judgement of two fund managers, it could be a good idea to diversify amongst active investing and passive investing approaches.
Active mid, small-cap funds look smart in this market correction
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