Glossary

Active investing is an investment strategy where fund managers or investors actively make buy and sell decisions in an attempt to outperform the market or a specific benchmark. 📈

It typically involves continuous research, market analysis, and trading, with the goal of generating higher returns than passive investing strategies, such as index tracking. 

Fun fact: Active investing can be exciting and potentially rewarding, but it can also be riskier and costlier than passive investing due to higher trading fees and the potential for human error. 😅 Research has shown that over the long term, many active investors fail to consistently outperform passive investment strategies, which has fueled the ongoing debate between active and passive investing proponents. 🥊

For example, an active investor might analyse a company's financials and industry trends to determine whether its stock is undervalued. If the investor believes the stock has growth potential, they might purchase it with the expectation that its price will rise in the future.