What is active management?

Active management, also called active portfolio management, refers to an investment strategy where a portfolio manager actively makes investment choices to optimise the performance of the portfolio.

This involves selecting individual shares, bonds or other assets, and timely adjusting the portfolio based on market analysis and economic outlook, with the aim of achieving a higher return than a passive strategy that, for example, tracks a market index.

This term is relevant in the context of investment strategies, market conditions, and financial regulation.