One way to work out whether you're getting good value for money is seeking out a little-known number, known as the active share. You can either buy an active fund, which is a selection of investments hand-picked by an expert fund manager. Active funds tend to cost more because you are paying for someone to pick your investments. How to pick the right numberAs a rule of thumb, if you are paying for active fund management, you should expect a high active share. Check the number of holdings: A concentrated fund of between 20 and 40 holdings is likely to have a high active share.

Source: Daily Mail October 23, 2022 08:16 UTC