Financial Dictionary

Financial Dictionary 

Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand. 

There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service.

Definition of 'Active Management'

Portfolio managers make investment decisions that result in the purchase and sale of securities. The goal of active management is to beat the returns of passive alternatives, usually index funds. Commonly referred to as beating the market. Active management is the opposite of passive management where portfolio managers match the performance of indexes, but don't try to beat their results.

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