passive portfolio strategy

passive portfolio strategy definition - finance
A strategy that relies on diversification to match the performance of some market index. The investor is minimally involved in directing the portfolio. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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