Meaning
Active fund management involves making strategic investment decisions with the aim of outperforming market benchmarks.Definition
Active fund management is an investment approach where a fund manager actively buys and sells securities to achieve returns greater than a specified market index or benchmark.How It Works
Fund managers perform in-depth research, analysis, and market timing to select investments they believe will outperform the general market, constantly adjusting the portfolio.Goals and Strategies
The primary goal is to generate higher returns (alpha) than passive investing. Strategies include stock picking, sector rotation, and utilizing derivatives to capitalize on market opportunities.Author
