Active Investing

The term active investing refers to an investment strategy which involves regular transactions and a relatively high level of involvement on the part of the investor.

Forex trading and day trading are two examples of active investing because they require the active participation of the investor.

The term is sometimes used in reference to actively-managed investment vehicles such as actively-managed wealth management solutions and investment funds. Although these investments are passive on the part of the investor, they are actively managed by a third-party service provider such as a wealth manager or fund manager.

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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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