Passive Management Style
Categories: Investing, Managed Funds
Passive management style, or PMS to mutual fund managers, refers a management style for index funds, ETFs, and other investment vehicles where a group of, say, 500 stocks are picked to represent a given area, and then... nobody touches them.
Someone (or someones) tracks their performance. Sometimes they drop some stocks and pick up others at year-end, or, if a company is bought or goes bankrupt, a replacement is found. Basically, one guy and a laptop can handle passive investment vehicles.