Active describes a manager’s selection approach
MoneyHelper describes active funds as using a manager to decide which investments to hold. Such funds aim to outperform a market rather than simply follow it, but that aim is not a guarantee.
Read the fund’s stated objective before interpreting a performance chart. Keep a question about what it is trying to achieve and what it uses for comparison. This guide does not rate managers or infer that an active approach will produce a better result for you.
Passive or index tracking describes a target to follow
MoneyHelper describes passive funds as tracking a market or index and says their fees are usually lower than active funds. The index being followed matters; the label does not describe every possible holding.
Ask for the exact index name and the current explanation of the tracking approach. A fund following one named market is not automatically a description of every market. Use the diversification guide for questions about scope rather than assuming passive means risk-free.
Keep method, costs and results separate
A management label does not resolve your charges or personal circumstances. Keep the current charge document beside the investment objective and any historical chart; do not replace a missing charge with a generic claim about which method is cheaper.
Investments can fall as well as rise. Past performance does not predict future returns. This guide does not recommend an active or passive fund. The fee illustration compares explicit hypothetical assumptions, not actual fund performance or the suitability of a switch.
- What is the objective or exact index?
- Which current charges apply to this arrangement?
- What does the comparison chart cover and what is excluded?
Sources & review
- MoneyHelper: Pension investment optionsChecked 2026-10-04
Next scheduled review: 2027-01-04. Provider details can change sooner. Use the official website for the current contact route.
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