passive portfolio strategy

passive portfolio strategy
A strategy that involves minimal expectational input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities, and therefore, does not attempt to find mispriced securities. Related: active portfolio strategy. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • Passive portfolio strategy — A strategy that involves minimal expectational input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid… …   Financial and business terms

  • Active portfolio strategy — A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly. Related: passive portfolio strategy Actuals The physical commodity underlying a futures… …   Financial and business terms

  • active portfolio strategy — A strategy that uses available information and forecasting techniques to seek better performance than a buy and hold portfolio. Related: passive portfolio strategy. Bloomberg Financial Dictionary …   Financial and business terms

  • Passive management — (also called passive investing) is a financial strategy in which a fund manager makes as few portfolio decisions as possible, in order to minimize transaction costs, including the incidence of capital gains tax. One popular method is to mimic the …   Wikipedia

  • Passive income — is a rent received on a regular basis, with little effort required to maintain it. It is advocated by some authors, especially by Robert Kiyosaki.Some examples of passive income are: * Repeated regular income, earned by a sales person, generated… …   Wikipedia

  • Passive Management — A style of management associated with mutual and exchange traded funds (ETF) where a fund s portfolio mirrors a market index. Passive management is the opposite of active management in which a fund s manager(s) attempt to beat the market with… …   Investment dictionary

  • Passive Investing — An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long term appreciation and limited maintenance. Also known as a buy and hold or couch potato strategy,… …   Investment dictionary

  • Portfolio Manager — The person or persons responsible for investing a mutual, exchange traded or closed end fund s assets, implementing its investment strategy and managing the day to day portfolio trading. The portfolio manager is one of the most important factors… …   Investment dictionary

  • passive management — See: indexing Management strategy to buy a well diversified portfolio to represent a broad based market index without attempting to search out mispriced securities Fund managers do not attempt to beat the market. Instead, they try to mirror the… …   Financial and business terms

  • Dedicated Portfolio — A passive form of portfolio management that involves the matching of future cash inflows with future liabilities. The process of dedicating a portfolio may be used as an alternative to multiperiod immunization, which reduces the level of interest …   Investment dictionary

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