Passive investing is a strategy that involves investing in a diversified portfolio of assets and holding it for the long term, rather than trying to actively manage it. The simplicity of passive investing is one of its main advantages. For busy investors, it can be a major benefit because it takes less time and effort than actively maintaining a portfolio. In comparison to active investors, passive investors can also gain from fewer fees and taxes. This is so because passive funds often produce fewer taxable events, like capital gains, and have lower expense ratios. Furthermore, passive investing can help investors avoid the pitfalls of trying to time the market or pick individual stocks. Instead, they can focus on the long-term and let the markets work in their favor.
Benefits of investing passively
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