In the context of investment management, active management requires fund managers to make strategic decisions based on market research, economic trends, and analysis with the goal of beating market averages. The managers seek opportunities to buy low and sell high based on their analyses. In contrast, passive management attempts to mirror the performance of a specific benchmark index, typically by maintaining a diversified portfolio of stocks or bonds that replicate the makeup of that index. This approach is often favored for its lower fees and reduced trading activity, making it accessible to a broader range of investors.