Which investment vehicle is known for being actively managed by professional managers?

Actively managed mutual funds are specifically designed to be managed by professional managers who make investment decisions on behalf of the fund's shareholders. These managers conduct research, analyze market trends, and select securities in an attempt to outperform a benchmark or index. The aim is to enhance returns through their expertise, active trading strategies, and market timing.

In contrast, index funds and many ETFs often follow a passive investment strategy, meaning they attempt to replicate the performance of a specific index rather than actively select securities. Real Estate Investment Trusts (REITs) can vary in their management style, but they generally focus on real estate assets and may not be actively managed in the same way as mutual funds. Therefore, the unique characteristic of actively managed mutual funds is their reliance on professional managers for investment decisions, which clearly sets them apart from these other investment vehicles.