One of the biggest debates in investing is active vs. passive management. Active managers try to beat a benchmark by picking stocks or timing markets; passive managers aim to track an index at low cost. Empirically, many active funds fail to outperform their benchmarks after fees and taxes, especially over long windows. Passive funds (index funds and ETFs) trade off the chance to beat the market for predictable market returns and usually lower fees. For beginners, the choice often comes down to cost, belief in manager skill, and tax efficiency. This question checks the core practical difference.