Active investing and passive investing are two main strategies for managing your investments, each with distinct approaches and pros and cons.
1. Active Investing:
Definition: In active investing, a portfolio manager or investor actively buys and sells individual stocks, bonds, or other assets to try to outperform the market.
Pros:
Potential for higher returns: Skilled managers can identify undervalued assets or market trends to potentially outperform benchmarks.
Flexibility: Active managers can adapt to market conditions, moving in and out of assets as needed.
Cons:
Higher fees: Active funds often have higher management fees due to the ...
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