Free Wealth Management Guide Building An Effectively Diversified Investment Por | Page 3

Active vs. Passive
Two basic investment philosophies exist; active management and passive management. Active money managers
attempt to “beat the market” through a variety of techniques such as stock picking and marketing timing. In
contrast, passive money managers avoid speculation and
subjective forecasting. They take a longer-term view and
attempt to deliver market returns using index or index
type funds.
To a