Active Investment

An active investment is an investment which requires a fair amount of involvement on the part of an investor.

Day trading, in which assets or derivatives are bought and sold within the same trading day, is a good example of active investment.

In a broader sense, the term can also denote investments in income-generating activities (a business) which require additional input by the investor in order to achieve returns.

The term active investment is sometimes used in reference to actively-managed investment vehicles such as actively-managed mutual funds and actively-managed wealth management services.

See also: Active investing

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

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