Investing is a key tool for building wealth and securing your financial future. The most widely used strategies include active and passive investing, which have their own specific characteristics, advantages and disadvantages.

What is active investing?

Active investing is a strategy in which an investor or portfolio manager regularly buys and sells assets with the goal of outperforming the market as a whole. Active investors focus on short-term price movements, analyse market trends and use their skills to identify undervalued assets. This approach involves constant monitoring of the markets, quick decision-making and a high level of involvement.

The benefits of active investing

Potential for higher returns: active investing can deliver higher returns than passive strategies if the investor is able to correctly identify and take advantage of market opportunities. For example, during economic crises, active investors can react quickly to changes in the market environment and adjust their…