An active fund is like the taxi – you are choosing a mutual fund where the fund manager has a view on the market, chooses his stocks to fit the investment mandate, and then manages the money by trading every day. Just as your experience of the taxi ride depends a lot on your driver, so also the performance of an active fund depends a lot on the fund manager. Just as the taxi driver works in the overall corporate environment of a taxi firm – Uber, for instance – so also the fund manager according to the rules set up by the fund.
