Active Management
| Active Management is an investment strategy that involves trading financial assets in order to profit from bull and bear markets. By buying and selling assets, active managers aim to generate returns that exceed the market average. Active management is a popular investment strategy among both individual and institutional investors. Many believe that active management can add value through the skilled selection of investments, timing of trades, and active management of portfolios. Critics of active management argue that it is difficult to consistently outperform the market, and that the fees associated with active management can eat into returns. They argue that a better strategy for most investors is to simply invest in a low-cost index fund and hold it for the long term. Whether or not active management is the best investment strategy is a matter of debate. However, there are certain situations where active management may be a good choice. For example, investors with a short time horizon or those who are looking to generate income from their investments may find active management to be a good fit. |
Share this glosssary
