Abstract

Relevant financial literature has for decades recorded debates about the choice between active and passive portfolio management strategy. In order to enrich domestic literature in this field, the paper presents the basic characteristics of these strategies, at the same time pointing to their positive and negative aspects. The aim of the research is to answer the question of which of these portfolio management strategies is superior. By putting forward arguments in favor of and against the choice of active and passive portfolio strategy, it is concluded that neither strategy is perfect and that it is impossible to talk about the superiority of active or passive portfolio management, as both strategies and both portfolio management models contain equally serious shortcomings that prevent them from achieving superiority. Problem solution should be sought in the implementation of a hybrid portfolio strategy that simultaneously integrates benefits and alleviates the disadvantages of these strategies.

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