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:
“You need not be proud of me.... I’m only being active till you can be again—it isn’t such a great desire on my part to serve the world and I’ll fall back into habits of sloth quite easily!”
—Eleanor Roosevelt (1884–1962)
“No officer should be required or permitted to take part in the management of political organizations, caucuses, conventions, or election campaigns. Their right to vote and to express their views on public questions, either orally or through the press, is not denied, provided it does not interfere with the discharge of their official duties. No assessment for political purposes on officers or subordinates should be allowed.”
—Rutherford Birchard Hayes (1822–1893)