Active management refers to a investment strategy where a portfolio manager or investment team makes specific investment decisions in order to outperform a benchmark index or achieve a particular investment goal. This approach typically involves frequent buying and selling of assets, as well as making strategic decisions based on market conditions and forecasts. Active management contrasts with passive management, where investments are made to replicate the performance of a specific index, such as the S&P 500. Proponents of active management argue that skilled portfolio managers can capitalize on market opportunities and outperform the market, while critics argue that the costs and fees associated with active management often outweigh any potential benefits. Research in active management typically focuses on understanding the factors that contribute to successful active management strategies, evaluating the performance of active versus passive management, and examining the impact of fees and costs on investment returns. This area of research is important for investors, asset managers, and financial regulators in order to make informed decisions about investment strategies and portfolio management.