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ARTICLE · 29 JULY 2022

Your Investment Strategy: Active, Passive Or Both?

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Stock market volatility during the last couple of years has reignited a long-running debate over active versus passive investing. Both strategies have supporters and critics and many experts...

United StatesFinance and Banking
Christopher Georgiou
Christopher Georgiou
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Stock market volatility during the last couple of years has reignited a long-running debate over active versus passive investing. Both strategies have supporters and critics and many experts advocate combining both approaches in a portfolio. As with most investment choices, the right strategy for you will depend on several factors, including your financial goals, investment expertise, time horizon and tolerance for risk. Before choosing or changing an investment strategy, learn more about active and passive investment strategies.

Related Read: Active Versus Passive Investment Funds: Should You Let Participants Decide?

TRACKING AN INDEX

Before defining what passive investing is, it is helpful to explain what it is not. "Passive" does not refer to individual investors' roles in managing their portfolios. Rather, it signals the investment approach taken by fund managers or financial advisors. So, for example, a hands-off approach toward your portfolio is not

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