What is active portfolio management & passive portfolio management?

Investors have two main investment strategies that can be used to generate a return on their investment accounts: active portfolio management and passive portfolio management. As the names imply, active portfolio management usually involves more frequent trades than passive management.

Are fund managers active or passive investors?

Fund managers can be active or passive investors. While passive investing is more prevalent among retail investors, active investing has a prominent place in the market for several reasons. Active investing requires a hands-on approach, typically by a portfolio manager or other active participant.

Is passive investing better than active investing?

Passive investing involves less buying and selling, often resulting in investors buying indexed or other mutual funds. Although both investing styles are beneficial, passive investments have garnered more investment flows than active investments. Historically, passive investments have earned more money than active investments.