active investment

Active investment involves a manager or investor actively selecting and managing securities, such as stocks or bonds, with the goal of outperforming the overall market or a benchmark index. Unlike passive investing, which seeks to mirror the market’s performance through index funds or similar strategies, active investing involves research, analysis, and frequent buy-and-sell decisions to capitalize on market opportunities. The aim is to generate higher returns through skillful management, though it often comes with higher costs and risks.