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What's Active management?
Active management metrics explained
The term active management implies that a professional money manager or a team of professionals is tracking the performance of a client's investment portfolio and regularly making buy, hold, and sell decisions about the assets in it. The goal of the active manager is to outperform the overall market.
KEY TAKEAWAYS
- Active management requires constant monitoring and frequent buy and sell decisions to exploit fluctuations in prices.
- Passive management is a buy-and-hold strategy that aims to equal the returns of the wider market.
- Active management seeks returns that exceed the performance of the overall markets.
Last modified 6mo ago
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