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Glossary

Knowledge for investors of all skill levels

Passive Management

Passive management is an investment strategy where a portfolio is designed to replicate the performance of a specific market index or benchmark. Instead of actively selecting and trading individual securities, passive management involves holding a predetermined set of assets that closely mirror the composition of the selected index.

The primary goal of passive management is to match the market's performance, providing more predictable returns with lower fees and reduced trading activity compared to active management.