Active management (also called active investing) refers to a portfolio management strategy where the manager makes specific investments with the goal of outperforming an investment benchmark index. Investors or mutual funds that do not aspire to create a return in excess of a benchmark index will often invest in an index fund that replicates as closely as possible the investment weighting and returns of that index; this is called passive management. Active management is the opposite of passive management, because in passive management the manager does not seek to outperform the benchmark index.
Read more about Active Management: Concept, Performance, Advantages of Active Management, Disadvantages of Active Management, Real Active Management
Famous quotes containing the words active and/or management:
“How often must I repeat, that I know or am conscious of my own being; and that I myself am not my ideas, but somewhat else, a thinking, active principle that perceives, knows, wills, and operates about ideas?”
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