Wednesday, December 29, 2010

Active Management

Active management is when a manager actively selects securities, based on their particular strategy and research, with the aim of beating a benchmark. Active equity managers generally fall into one of two camps: value based, and growth based, but in practice managers may employ both schools of though in a blended style. Active managers may also be top-down or bottom-up in their approach. Active managers generally charge higher investment management fees.

Synonyms: Active fund

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