WHAT IS ACTIVE INVESTING?
Active investing is the process by which a portfolio manager selects suitable investments based on the independent valuations in order to outperform a specific benchmark index or percentage return.
WHAT IS PASSIVE INVESTING?
Passive investing is a portfolio management strategy where the objective is to match a specific benchmark index, such as the S&P 500 or the Dow Jones Industrial Average, or percentage return, usually by investing in similar stocks proportionate to the underlying benchmark index.
