Choose your style

Whether you should be passively or actively invested is a debate that continues to burn. And while the passive school of thought seems to have won the battle over the past few years, the question of which is better is far from black and white.

Active investing involves an engaged approach, usually performed by a portfolio manager. Depending on the fund’s mandate, it generally aims to beat an index by picking winners and avoiding losers.

This requires deep analysis on the behalf of the fund manager to know when it’s best to buy, or sell, a stock, bond or other security.

Both quantitative and qualitative tools are used. Investment managers often go to the companies they’re considering to gain a deeper understanding of how it works and the people who