Passive Management

Passive management is the policy generally taken by a fund manager on his portfolios so that he can reduce operational cost. It is generally applied to the stock market industry as well as in bonds and hedge funds. Many investors find passive management as an unreasonable method of fund management.Barclay and State Street Corp. follows this method of management and Vanguard 500 is a passive management fund which is considered to be one of the biggest equity fund.