However, a managed fund, a group of securities packaged together as one investment product or fund and managed by a portfolio manager is available to simplify the investing process.
In order to compare two outperforming portfolio managers, one should therefore consider not only the relative return, but also the risk taken by each portfolio manager.
Only the remaining 2010% of return is explained by some combination of (1) the fund's basic strategy and (2) the tactics and investment selections of the fund's portfolio manager.
