Active vs. Passive Investing

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 ...

Please register or log in to continue...

Become a better, more informed investor with Good Money Guide. Our expert, exclusive educational courses provide the sort of information that everyone, from first-time investors to experienced professional traders, can learn to profit from.