Explore commonly used personal finance terms.
Active management is a hands-on investment strategy where a portfolio manager or team makes ongoing decisions about buying and selling assets with the goal of outperforming a benchmark index. Unlike passive management, which seeks to match index performance, active management relies on research, market analysis, and forecasting to identify profitable opportunities. While it can yield higher returns, active management also involves higher fees and risks, as returns are not guaranteed and depend on the manager’s expertise.
