In order to outperform the market, active investors actively acquire and sell securities. On the other hand, passive investing entails purchasing and holding a diversified portfolio of securities that mirrors a market index. Instead than trying to outperform the market, passive investors seek to mirror returns.
The difference between active and passive investing
- Thread starter Johnson2468
- Start date
Active investors always engage in business of buying and selling assets on daily basis. They are making profit or losses on daily basis. While passive investors buy and hold for sometimes through this means they are making money even when they are sleeping.
I would rather choose to gain passive income ideas because it is what will last long and I will earn some money effortlessly.
