What can be understood from active portfolio?

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter13: Investment Fundamentals
Section13.3: Risks And Other Factors Affect
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What can be understood from active portfolio? 

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Introduction

There are two strategies or approaches which can be used in management of portfolios which are active strategy and passive strategy.

Active strategy involves active participation in investment activities so that returns could be higher than overall market. Passive strategy involves establishing index identical portfoilios so that return equivalent to market could be achieved.

 

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