Investment Management Styles

Active Investment Management: Active management (also called active investing) refers to a portfolio management strategy where the manager makes specific investments with the goal of outperforming an investment benchmark index.

Passive Investment Management: Passive management is the opposite of active management in which a fund’s manager(s) attempt to beat the market with various investing strategies and buying/selling decisions of a portfolio’s securities. Also known as “passive strategy,” “passive investing” or “index investing.”