active management
Deliberate portfolio steering
Active management is an investment strategy where portfolio managers make deliberate decisions about buying and selling securities, aiming to outperform a market benchmark.
This contrasts with passive management, which simply tracks an index.
Active managers analyze markets, pick stocks, and time trades: The fund's active management comes with higher fees.
Whether active management justifies its costs remains debated.
- portfolioCollected works or assets
- benchmarkStandard for comparison
- outperformAchieve superior results
- alphaFirst Greek letter
- stock pickingChoosing specific shares to purchase
hedge fund · fees · fee structure · trading · rebalancing · analyst · market analysis · research · high turnover · mutual fund · strategy · discretionary · hands-on · oversight · Wall Street · returns · risk · passive
active, management, act, action, actions, activate, activated, activates, activating