Active and passive investing are terms that are thrown around financial circles. Today, I’d like to explore some considerations associated with active investing.
Active investing is driven by a desire to “beat the market” and outperform specific benchmarks. Portfolio managers actively analyze economic, political, and investing trends to make buy or sell decisions. By capitalizing on market movements, they aim to outperform established benchmarks.
However, it’s important to note that active investing often incurs higher fees over time. When portfolio managers buy and sell securities regularly, they charge additional fees to cover their services and the research professionals who support them.
If you would like to explore active investing further or have any questions, please feel free to reach out. I am here to answer any questions you might have.