📕 Investment Dictionary

Passive Management (Investing)

What is Passive Management (Investing)?


Passive management investing is when an investor delegates the decision making of what stocks to buy or sell to a professional money manager. The investor still owns the stocks, but they are managed by someone else. This type of investing is considered passive because the investor is not actively involved in the day-to-day management of their portfolio than he/her does in active management.

Passive management investing is a style of investing strategy where the investor relies on index funds to track the performance of a specific market or segment of the market. Passive investors do not attempt to time the market or beat the index, but instead they hope to achieve returns that match or exceed the market returns by holding a broadly diversified portfolio.

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