active investment management

Active Management

The practice of a money manager or a team of money managers making investment decisions on what securities to include in a mutual fund or portfolio. Sometimes active management exists within certain parameters; for example, money managers may only buy blue-chip stocks for a certain fund and growth stocks for another. The basic premise of active management, however, states that the managers can maximize the return for investors by buying or selling securities on a fairly regular basis. See also: Passive management, Indexing.

active investment management

The management of an investment portfolio that involves active trading of securities in an attempt to produce above-average returns on a risk-adjusted basis. Active management is predicated on the belief that it is possible to beat the market averages consistently. Compare passive investment management.