Investing for Beginners , investing

Active investment (management) is opposite to passive investment and means that investments are managed by some investment professional that picks the securities according to investment market tendencies and macro economical environment trying to outperform the benchmark.

Active investment doesn’t mean that only day stock traders are active investors. Active investment management simply means that investments are selected manually and are changed over some time (period may be very long) but still it is different from index investing which is passive.

There are always continuing the debates which one is more superior: active investing or passive. Some says that active investment does not create any value and only takes a lot of management fees for that. But the another true is that if everybody would chose to invest passively, then it inevitably would create new niches for active investment managers and help them to beat the market more easily.