Active Return Calculator

What is Active Return?

Active return is a measure of the performance of an investment portfolio relative to a benchmark index. It represents the difference between the portfolio’s return and the return of the benchmark. A positive active return indicates that the portfolio has outperformed the benchmark, while a negative active return indicates underperformance. Active return is often used by portfolio managers to assess the effectiveness of their investment strategies and to demonstrate their ability to generate excess returns over a passive investment approach.