What's the difference between active and index-linked investment strategies?
Active investment strategies are designed to «beat the market»; An index-linked investment strategy is an investment strategy that limits itself to replicating the performance of a market one-to-one as far as possible.
Active investment strategies
Active investment strategies are designed to achieve better investment success (performance) than the market average. This is done through the targeted selection of particularly promising securities and buying or selling at the best time.
Index-linked investment strategy
This investment strategy limits itself to replicating the performance of a market one-to-one as far as possible. It does not seek to outperform the market average, but aims not to underperform it either.