Fund management can be described as the process of monitoring your assets and administering its cash flow to produce returns on your investments.
Fund management can be classified under two major types: passive and active fund management.
In active fund management, investment decisions are made by a management team with the aim of beating a specific benchmark like the S&P 500.
There is no management team in passive fund management, but it is so designed to closely imitate the performance of a specific benchmark.
Some DeFi projects now permit the occurrence of passive fund management in a decentralized way. DeFi’s transparency enables users to monitor the management of their funds as well as comprehend their incurred costs.
