What’s the difference between a passive fund and an active fund?

The main difference is how the fund is managed.

• Passive funds are often called “index” funds, follow the market automatically. For example, the fund might invest in the New Zealand Stock Exchange (NZX) top 50 companies. As the value of that group of companies moves up and down, the value of your investment will move in tandem.
• Active funds employ Fund Managers that watch the market and actively look for opportunities to improve returns for investors, whether that's individual companies, specific industries or rapidly growing areas of the world.

Actively managed funds generally charge higher fees than passive funds, but will potentially also see higher returns. It’s for this reason that our funds follow a blended investment approach, giving our investors the best of both worlds. Learn more about managed funds.

 Learn more. 

• How do I choose a managed fund?
• What’s the difference between managed funds and term deposits?
• All Investment FAQs

Things you should know.

BT Funds Management (NZ) Limited is the issuer and manager and Westpac New Zealand Limited is a distributor of the Westpac Active Series.

The material on this webpage is provided for general purposes only and is not a recommendation or opinion in relation to the Westpac Active Series. You should not rely solely on the information on this webpage.

Investments made in the Westpac Active Series do not represent bank deposits or other liabilities of Westpac Banking Corporation ABN 33 007 457 141, Westpac New Zealand Limited or other members of the Westpac Group of companies. They are subject to investment and other risks, including possible delays in payment of withdrawal amounts in some circumstances and loss of investment value, including principal invested.

None of BT Funds Management (NZ) Limited (as manager), any member of the Westpac Group of companies, The New Zealand Guardian Trust Company Limited (as supervisor), or any director or nominee of any of those entities, or any other person guarantees the Westpac Active Series' performance, returns or repayment of capital.

View the Product Disclosure Statement for the Westpac Active Series  or get a copy from any Westpac Financial Adviser.