Active vs. Passive Funds
2021.04.07 11:40 am - 12:21 pm
Teaching point: What impact do brokerage fees have on your investment returns?
Agenda
Agenda
Do Now (5 - 10 minutes)
Do Now (5 - 10 minutes)
Math: Active vs. Passive Funds (20 - 25 minutes)
Math: Active vs. Passive Funds (20 - 25 minutes)
Closure and Questions (5 minutes)
Closure and Questions (5 minutes)
Math: Active Vs. Passive Funds
Math: Active Vs. Passive Funds
It’s important to note that some funds have higher fees because they are managed by a professional called an investment manager. Let’s take a closer look at how these fees compare across different types of funds in this activity. Follow the directions on the worksheet in GC to complete the activity.
It’s important to note that some funds have higher fees because they are managed by a professional called an investment manager. Let’s take a closer look at how these fees compare across different types of funds in this activity. Follow the directions on the worksheet in GC to complete the activity.
Actively managed fund: investment manager picks and chooses which companies will be in the fund
Passively managed fund: companies in a fund that automatically aligns closely with the market (for example, S&P 500)