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active management

Definitions (2)

1. A money-management approach based on informed, independent investment judgment, as opposed to passive management (indexing) which seeks to match the performance of the overall market (or some part of it) by mirroring its composition or by being broadly diversified.

2. The buying and selling of bonds, as opposed to holding them to maturity.

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Active Management vs. Passive ManagementThe best that can be said for the active management approach is that the dispersion of results between the best performing and worst performing active managers is likely to be greater in less liquid m ... Read more