Investors who prefer active investing are aiming for alpha or outperformance that beats markets.

To help mitigate the risk of poor returns, they usually construct a portfolio of active managers. The only problem is these managers need to be carefully chosen since investors are best served by putting together experts with varying strategies and backgrounds.

Read: How to choose a fund manager

These active investors should also consider concentrated products. Read more on why this helps boost their returns.

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Active or passive? Help clients choose their style

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How to use active investing to outperform

Passive investing is not 100% safe. So, it’s always best to help clients choose an approach that’s optimal rather than one that simply seems risk-free.

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Your clients know good value and want to buy stocks when they’re on sale.

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A financial advisor’s business is a bit like a muscle building workout. A planner’s hard work may produces initial success and results, but they’ll inevitably hit a growth barrier.

Vik’s Pick: Most active funds aren’t active

A new study finds some mutual funds aren’t being managed as actively as their fees suggest.