Fund managers at present combine the two most common types of investments within a financial portfolio. These two types of investments are generally termed as the active strategies and the passive strategies. The active strategies call for making financial decisions at regular time intervals. These decisions pertain to investments and reinvestments of securities, including the type of security to buy the amount of money that will be invested and when a particular security will be sold. The passive strategies on the other hand is a type of investment strategies that needs minor changes in ones investment portfolio, since most or all of the investments made are within and efficient and predictable market that gives investors a small number of unforeseen financial shocks.