What defines actively managed equity funds in the context of UITFs?

Actively managed equity funds in the context of UITFs are defined by their reliance on the expertise of a fund manager. This approach involves a hands-on strategy where the fund manager actively makes investment decisions to achieve the fund's objectives. The fund manager analyzes various factors such as individual stock performance, market conditions, economic indicators, and sector trends to select securities that they believe will outperform the market.

This active management is contrasted with passive management strategies, where investments are typically made to track a market index without making individual performance assessments. The fund manager's expertise and decision-making ability play a critical role in potentially generating higher returns compared to benchmarks.

In summary, the involvement of a skilled fund manager to make informed investment choices is the hallmark of actively managed equity funds, emphasizing a strategy designed to outperform the market rather than simply adhering to it.