Passive Vs Active investment
Why there isn’t the universal solution for all of us.
I’d like to bring a very basic yet fundamental topic, as I believe that from time to time we should refresh our memory.
Passive investing aims to replicate the performance of a specific market index, such as the $SPX500 or $NSDQ100 rather than trying to outperform it. This type of investment is based on the belief that it is difficult, if not impossible, to consistently beat the market in the long run (20 years or more).
The main advantage of passive investment lays into the costs, which are generally much lower, as they require less research and active management.
On the other hand we have
Active investing, which seeks to outperform market returns through strategic stock selection, in-depth analysis, and market timing. The decisions of buying or selling are based on their research and economic forecasts. This approach requires constant analysis and intensive market monitoring and for this reason tend to have higher management fees.
The main advantage of active investment lays in above average returns, even if there is no guarantee of success.
I do not believe that one is better than the other, the choice depends on the investor’s individual goals, risk tolerance, and how much time one can dedicate to investing.... Show More
We use our own and third-party cookies on our websites to enhance your experience, analyze traffic, and for security and marketing. For more info, see our Cookie Policy or go to Manage Settings.
Privacy Preference Center
When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.
More information
Manage Consent Preferences
Strictly Necessary Cookies
Always Active
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Cookie List
label
ConsentLeg.Interest
label
label
label
Sat Nov 08 2025 13:10:25 GMT+0000 (Coordinated Universal Time)
