The term active management refers to an investment strategy that involves trading financial or crypto assets in order to profit from bull and bear markets.
Understanding the Term
Essentially, active management is the process of purchasing and selling assets regularly. The process is usually based on what appears to be profitable market conditions. In a broader sense, active management refers to a group of managers who trade certain sets of assets to make a profit.
Active management seeks returns that exceed the performance of the overall markets to manage risk, increase income, or achieve other investor goals.