Active management is a style of investing where the investor or portfolio manager tries to outperform the market by selecting certain investments they believe will do well and avoiding others they think will do poorly. This can be done by analyzing a company’s financial statements and prospects, talking to management, and doing other research. It’s a more hands-on approach than passive management, which simply tries to match the market return by buying and holding a diversified mix of securities.
Active management investing is a technique employed by investors to try and beat the market. It involves making investment decisions based on the analysis of individual securities, rather than relying on a passively managed index fund. This approach is typically more expensive and risky, but can provide greater returns if successful.
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