Active short-term investment strategy


An investment strategy characterised by monitoring and attempting to capitalize on market conditions to optimize the risk and return relationship of short-term investments.

Active strategies can include intentional matching (matching strategy) or mismatching (mismatching strategy) the timing of cash outflows with investment maturities. 

A laddering strategy is an active strategy that falls somewhere between a matching and a passive strategy.

Compare: Passive short-term investment strategy

« Back to Index