SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
1021223-00006-00
David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High, RICP®
Financial Planner
Nicholas J. Over, CFP®
Financial Planner
Sara E. Martin
Client Relations Manager
Jennifer A. McCabe
Client Relations Specialist
jennifer.mccabe@prudential.com
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
November/December 2023
Active vs. Passive
While many people know the differences between stock, bond and money market mutual funds*, they may not be as familiar with mutual fund styles, such as active versus passive. These styles may have a role in your investing strategy as you maneuver through up and down markets and how far you are from reaching your financial goals.
While your financial professional can help you determine the right asset mix for your situation, it still pays to understand how different styles of mutual funds are designed to take advantage of various market environments.
Some mutual funds blend passive and active management, but most are either one or the other. An example of a passive manager would be an index fund manager. These funds generally try to mimic the holdings of a particular index**, so they don’t buy and sell funds as often as an active manager does.
Some index fund managers try to outperform a given index by focusing on a particular part of the index, such as overweighting a country in an international index or underweighting a sector.
An active manager, on the other hand, buys and sells investments, believing the fund can beat a given benchmark. Because this type of fund trades more often, it generally has higher charges and fees than a passively traded fund.
"THE STANDARD & POOR'S 500 INDEX IS COMMONLY MIMICKED BY PASSIVE INVESTMENT MANAGERS. THE S&P 500 REPRESENTS THE LARGEST COMPANIES BY MARKET CAP TRADED IN THE U.S. STOCK MARKET"
*Investors should carefully consider the investment objectives, risks, charges, and expenses of the fund before investing. Read the prospectus carefully before investing or sending money. Because mutual fund values fluctuate, redeemed shares may be worth more or less than their original value. Past performance won’t guarantee future results. An investment in mutual funds may result in the loss of principal.
** You cannot invest directly in an index.
1072356-00001-00
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Centuria Financial Group is not affiliated with Prudential Financial. Centuria Financial Group sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Centuria Financial Group is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Centuria Financial Group and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Sara E. Martin and Jennifer McCabe are employed by David McCabe and not The Prudential Insurance Company of America or its subsidiaries.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Centuria Financial Group and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.