Active and passive Management

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  • Created by: lilly557
  • Created on: 27-01-17 09:01
What is active management?
Seeks to outperform a predetermined benchmark over a specific time
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Which type of asset management incures a higher fee?
Active management
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What is top-down?
Manger focuses on economic and industry trends rather than prospective companies
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What is bottom-up?
The analysis of a companys net assets future profitability and cash flow and other company specifc indicators is a priority
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What investment styles are used in the bottom up approach?
Growth, value, momentum and contrarian investing
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What is growth investing?
Picking up shares of companies that present opportunites to grow significantly in the long term
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What is value investing?
pick the shares of the companies that are undervalued relative to their present and future profits or cash flows
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What is momentum investing?
Picking the shares whose share price is rising on the basis that this rise will continue
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What is Contrarian Investing?
Picking shares that are out of favour and may have hidden value
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Other cards in this set

Card 2

Front

Which type of asset management incures a higher fee?

Back

Active management

Card 3

Front

What is top-down?

Back

Preview of the front of card 3

Card 4

Front

What is bottom-up?

Back

Preview of the front of card 4

Card 5

Front

What investment styles are used in the bottom up approach?

Back

Preview of the front of card 5
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