So lets see what is Managed Path:
Managed Path:By default when we create Site Collections inside a Web Application in SharePoint they are created with the URL http://servername:portnumber/site/. But if we want to have a specific URL other than /site we need to create Managed Path. So as an example if we want to create Site Collections for HR and Finance Dept and want to have URL's like http://servername:portnumber/Finance and http://servername:portnumber/HR we can do with the help of Managed Paths. Managed Path helps to have site collection with the URL other than /site.
Managed Path can be created in Central Administration in Application Management under SharePoint Web Application Management.When we create Managed Path either we can select Explicit Inclusion or Wildcard Inclusion.
So lets see what difference it makes on Managed Path when we select Explicit Inclusion or Wildcard Inclusion. We will create two Managed Path. One with Explicit Inclusion & another with Wildcard Inclusion.
Explicit Inclusion: When we do not want to create further Site Collections under the specified managed path then we need to use this option. Explicit Managed Paths allow a single spsite to be created at exactly the given url. So continuing with our example if we are creating a Managed Path with the name HR and don't want that people can create further site collection under HR then we will be using this option.
SharePoint will allow to create only one site collection within this Managed Path http://servername:portnumber/HR
Wildcard Inclusion:When we want to create further Site Collections under the specified managed path then we need to use this option. Wildcard Manage Paths allow unlimited sites to be created under the given url So continuing with our example if we are creating a Managed Path with the name Finance we will be able to create further Site Collections in this Managed Path. So we can have multiple site collections like http://servername:portnumber/Finance/TeamSite1 and http://servername:portnumber/Finance/TeamSite2
This option is required when we want to have Self Service Site Creation enabled in our Web Application.
Try a question on Managed Path: Question on Managed Path