Fund managers that don't move the money they manage between different assets a lot as much as active fund managers . A passive fund manager usually buys a range of assets to spread the risk, then holds the same assets for a long time. Passive fund managers generally rely on the market to dictate the performance of their fund. A passive fund is likely to be a lower risk investment than an active fund, but also has less potential for higher returns.
Here you'll find explanations of the many financial terms used throughout the Sorted website.