Active versus Passive Investing: The “Alpha” Bet
active funds management, benchmark performance, benchmark portfolio, diversified portfolio, investment management, investment managers, investment strategy, management costs, outperformance, passive funds management, passive investment
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In investment terminology, “alpha” refers to the level of outperformance of a portfolio relative to an appropriate benchmark. Of course, everyone would like to achieve returns in excess of their benchmark. But you’re advised to have a good grasp of the cost and chance of achieving alpha before you decide to chase it.
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