New Delhi, March 3 -- Investing in the stock market may be intimidating, especially for beginners. Many struggle with understanding essential stock market terms, making the process complex.

Here's a simple guide to one such term: active funds. Let's see what active funds are, how they work, and why they matter.

Investors can choose between two types of prominent mutual funds: active and passive. Active funds or actively managed mutual funds require a professional fund manager who chooses and manages a portfolio of securities in accordance with market indices such as S&P 500, Nifty 50, etc. Unlike passive funds that simply track the performance of an index, active funds take a more hands-on approach, aiming to secure higher returns.

Fun...