Personal Finance Active vs passive mutual fund schemes: Which is better for whom? Updated : October 31, 2020 11:10 AM IST A mutual fund pools money from multiple investors having similar financial goals and invests the corpus in securities with an aim of achieving the investment objective of the fund. With respect to the approach of the fund manager, there are two types of funds – actively managed funds and passively managed funds. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.