Finance

Passive Management Definition

Passive Management Definition

Passive Management is usually a style of management related to mutual and exchange-traded funds when a fund’s portfolio mirrors a market index. Passive management may be the opposite of active management when a fund’s managers try to beat the industry with various trading strategies and buying or selling decisions of any portfolio’s securities. Passive management is usually a financial strategy by which an investor invests prior to a pre-determined strategy that does not entail any projecting.