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How would you characterise the management strategy of a) an 'active' investor; b) a 'passive' investor;...

How would you characterise the management strategy of

a) an 'active' investor;

b) a 'passive' investor;

c) and a 'hybrid' investor

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Answer #1

An active investor actively monitors his portfolio. He tracks the daily prices and regularly buys and sells securities. His portfolio is constantly changing. He is interested in making short term gains.

A passive investor invests and does not regularly monitor. He has a long term perspective. He is interested in the returns as income and not capital gains.

A hybrid investor is a mix of the above. The investor periodically buys/sells the securities to make capital gains but not on a daily basis. The investor is interested in both dividend/interest as well as capital gains.

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