Investment Styles
From finiki
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.
Active management
Active management attempts to outperform the market using various techniques.
