Passive investing is an investment strategy that aims to maximize returns over the long run by keeping the amount of buying and selling to a minimum, traditionally referred to as ‘buy and hold’.

Typical passive investing is to hold a cap weighted basket of underlying instruments in the portfolio, such as the ETFs and index investing. Commonly exercised by mutual funds. It features low or zero management fee, ultra low turnover and better returns over a majority of actively managed funds.

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