Financial Jargon Buster Dictionary
This glossary is provided for information only and is not regulated by the Financial Services Authority.
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Passive Management
An investment approach which aims to mirror or 'track' the performance of a financial index. This is normally done by either investing in the exact constituents of an index or by taking a representative 'sample' of that index. The managers of the fund have lower expenses than active fund managers, and the charges to investors are therefore lower.
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