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Passive Strategy vs. Active Strategy
nuary 16th 2018
Buy the Market
Investments that are similar to a market index
A Portfolio Manager picks stocks to look like a market index
Low Fees
Beat the Market
Investments that are different from a market index
A Portfolio Manager picks stocks they believe will increase in price
High Fees
Robo-Advisors and Investing 101 / J
Active investing is the opposite, the idea that by buying and selling
more frequently will “Beat the market” and make you more money. This is the idea that your Portfolio Manager is smarter than the market, therefore you pay them a higher fee because they can get you a higer return. Sounds great but let’s look at the data.
ROBO ADVISORS AND GROWING YOUR WEALTH
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