Imagine you have started a career as a financial advisor, and one of your clients wishes to start saving for retirement. Your client has asked you to answer the following questions:

1) Explain the difference between active fund management and passive fund management.

2) What is the argument for investing in actively managed mutual funds?

3) What is the argument for investing in passively managed mutual funds?

4) I am planning to save $500 per month for retirement. Do you recommend that I invest in actively managed funds or passively managed funds? Please explain your recommendation.