Investment Fundamentals
Active Investing
Definition
What is Active Investing?
An approach that selects and trades investments in an attempt to outperform a benchmark.
Example in practice
How This Looks in Practice
An active manager reduces bank shares and increases telecom holdings based on research.
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Related Terms
Investment Fundamentals
Principal
The original amount of money invested or lent, excluding later returns.
Investment FundamentalsCapital
Money or other resources committed to produce income, growth, or another economic benefit.
Investment FundamentalsInvestment
An asset or commitment of money made with the expectation of future income, growth, or both.
Asset ClassesAsset
Anything with economic value that can be owned or controlled.