Find out more about Passive Investments
Passive investments are generally used when dealing in the stock market. Unlike actively managed investments, a passive investments' main strategy is to buy and hold shares instead of actively trading in attempt to benefit from market peaks and troughs. Passive investments generally can be characterized by:
- Lower costs are involved compared to other strategies when you buy and sell shares on a regular basis.
- Does not intend to perform better than the stock market but instead keep track with it
- Considered a long-term investment strategy as you hold on to shares for a longer period of time