Active Management

Active management - Active management is a term used to explain a money management approach based on intelligent and informed judgment on managing investment needs. Active management is the opposite of passive management, which means to rely on indexing. In indexing, the stock portfolio is set up to mimic an index such as the S&P?s 500. An active share is a program that was set up to survey the performance of mutual fund managers engaged in active management. Before 2006 mutual funds managers were said to be under performing. An active share is calculated as a percentage of the investments that differ from the benchmark index being used.