There are two extremes in the mutual fund world. One one end, there are those actively managed funds. And on the other end, there are passive funds that track indexes. However, there is a middle path – smart beta funds. What Is a Smart Beta Fund? A smart beta fund tracks a particular index, but the stocks are selected NOT on the basis of market-cap, but on the basis of certain factors. These factors include: value, momentum, dividend, quality etc. The way smart beta funds work, it can be mistaken as an actively managed fund. However there are some differences …