Active investment management is a strategy that can be used to optimize portfolio performance. This strategy involves choosing securities based on certain criteria, such as the size of the company, the P/E ratio, and the dividend yield.

A portfolio manager is needed for active investments, as they require constant involvement. Active investors strive to outperform the average stock market by taking advantage of short-term price fluctuations by buying and selling stocks. Rather than following a specific index, active investors buy any stocks that they believe will generate income. They use different methods like short selling, different hedging strategies, and they can get out of the deal when the risks are very high.
You need a degree of experience, a thorough understanding of the market, the ability to place timely bets on specific assets and a clear exit strategy when investing in this type of investment. Errors can lead to losses.

Active investment management is a process in which investors make decisions about what securities to buy or sell based on their predictions on how the market will move.

Active investment management basically refers to a strategy which aims to have an optimal portfolio. Predictions are made on what is going to possibly happen in the market, so as to make decisions accordingly - either buy or sell or keep. Active investors will try to take advantage of short term price movements.