LOADING
An investment strategy where a portfolio manager makes specific buy and sell decisions with the goal of outperforming a benchmark index.
Active managers use research, market forecasts, and their own judgment to select securities they believe will perform well. This contrasts with passive management, which simply tracks an index. Active management typically carries higher fees, with expense ratios of 0.5% to 1.5% or more. Studies show that roughly 80-90% of actively managed funds underperform their benchmark over a 15-year period after fees.