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Fundamental
Active Management
Human-driven security selection and timing to beat benchmarks
Definition
Active management involves portfolio managers making investment decisions to select securities and time market entries/exits with the goal of outperforming a benchmark index. This contrasts with passive management (index funds) and typically involves higher fees due to research costs and trading activity.
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#portfolio management
#benchmark
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#alpha
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Related Terms
Category: Fundamental
Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.
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