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Passive Investment Management

   Also found in: Wikipedia 0.03 sec.
Passive investment management
Buying a well diversified portfolio to represent a broad-based market index without attempting to search out mispriced securities.

Passive Management
The practice of a money manager or a team of money managers making investment decisions on what securities to include in a fund or portfolio, and then leaving those securities largely unchanged for a significant period of time. To give a very simple example, an investment manager may buy every stock on the Dow Jones Industrial Average and hold them for a period of five or 10 years. Passive investment managers seek a well diversified set of securities. See also: Indexing, Active investing, Value investing.

passive investment management
A method of managing an investment portfolio that seeks to select properly diversified securities that will remain relatively unchanged over long periods of time. Passive investment management involves minimal trading, based on the belief that it is impossible to beat the averages on a risk-adjusted basis consistently. Compare active investment management.


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FundQuest has been conducting research on the benefits and challenges of active and passive investment management for years," says Tim Clift, Chief Investment Officer at FundQuest.
The alliance was formed in 2001 to jointly provide passive investment management services for Irish institutional investors.
Since introducing the industry's first index mutual fund in 1976-- the $107 billion Vanguard(R) 500 Index Fund--Vanguard has established itself as a leader in the passive investment management approach, with 56 stock, balanced, and bond index funds, as well as 14 commingled index trusts.
 
 
 
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