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:
“This teaching is not practical in the sense in which the New Testament is. It is not always sound sense in practice. The Brahman never proposes courageously to assault evil, but patiently to starve it out. His active faculties are paralyzed by the idea of caste, of impassable limits of destiny and the tyranny of time.”
—Henry David Thoreau (1817–1862)
“People have described me as a “management bishop” but I say to my critics, “Jesus was a management expert too.””
—George Carey (b. 1935)