Investment Styles

From finiki

Active management

Active management attempts to outperform the market using various techniques.

• Buy and Hold
• Contrarian Investing
• Dividend Growth Investing
• DRIPs
• Dollar Cost Averaging
• Dollar Value Averaging
• Growth Investing
• Momentum Investing
• SIPs
• Value Investing

Passive management

The Efficient Market Hypothesis or EMH is one of the factors that leads one to passive management. Put simply, since you can't beat the market, you attempt to passively replicate market performance. It involves the use of index funds and index-based exchange traded funds (ETF's). Turnover is normally low which improves the tax efficiency.