Active, or active investment strategy
Definition
An active investment strategy is when investment firms or investors try to beat an index using research, forecasting and experience of companies and share markets to make decisions. Clients may pay fees for this expertise, or frequent trading. Some supporters believe that when the share markets dip, active management may limit impacts because of active decision making by real people as opposed to passive funds that simply track the market down.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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