Active Management is the employment of a human factor, such as one particular manager, co-managers or maybe a team of supervisors, to actively deal with a fund’s profile. Active managers count on analytical research and their particular judgment and experience in making investment decisions on what securities to obtain, hold and sell. The opposite regarding active management is named passive management, better often known as “indexing”. Active management means a portfolio management strategy in which the manager makes particular investments with with regards to outperforming an expense benchmark index.
Active Management Definition
