Passive Management
An investing strategy that mirrors a market index and does not attempt to beat the market. Also known as "passive strategy" or "passive investing."
Investopedia Commentary
Followers of passive management believe in the efficient market hypothesis. It states that at all times markets incorporate and reflect all information, so stock picking is futile. As a result, the best investing strategy is to invest in an index fund. This is the opposite of active management.
Related Links
Index Investing Tutorial
Being Lazy with a Couch-Potato Portfolio
See also: Active Management, Buy and Hold, EMH, Inactivity Fee, Index, Index Fund