Active management
Active management , also known as active portfolio management or active investment style , is a form of strategy in portfolio management , i.e. the administration of assets invested in securities.
Characteristic of the Active management is not simply a - usually through a stock exchange index - specified benchmark (English benchmark replicate) to want, but by Classification (Switching) based on their own market assessments to seek excess returns over the benchmark. In this case, more or less high costs must necessarily be accepted. Fundamental analysis or technical analysis can provide decision support for the asset manager .
The counterpart to active management is passive management , in which a benchmark is more or less perfectly reproduced with very low management costs.
Special case funds
If the fixed assets are an investment fund ("fund" for short), one also speaks of active fund management . The fund manager has the role of observing and analyzing the markets and reallocating the investments depending on the market situation in order to generate an excess return compared to the benchmark. At the same time, this causes a high cost burden - compared to passive fund management. Studies show that on average less than 20 percent of all actively managed funds achieved the excess return after costs.
Comparison to passive management
See Passive Management # Comparison to Active Management .
Individual evidence
- ↑ Thomas Benesch, Franz Ivancsich: Active versus Passive Portfolio Management. What is written in glass balls about efficient markets . In: Working Paper Series by the University of Applied Sciences of bfi Vienna . No. June 16 , 2005 ( Online [PDF; 406 kB ]). Online ( Memento from February 5, 2018 in the Internet Archive ) Here p. 4.
- ↑ Deutsche Börse AG's stock exchange lexicon ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
- ↑ Investment Funds: Active or Passive Management - Which Is More Successful? In: Insurance messenger. Retrieved February 7, 2018 .
