What are the key differences between active and passive investing strategies?

Active investing involves selecting individual securities to outperform the market, requiring frequent buying, selling, and analysis. It typically has higher fees due to management costs and carries more risk, aiming for higher returns. Passive investing, on the other hand, seeks to replicate the performance of a market index with minimal trading. It involves low management fees and lower risk, as it aims for steady, long-term growth. Passive strategies require less time and effort, while active strategies demand more attention to market movements. Ultimately, passive investing tends to be more cost-effective and less risky than active investing.