This strategy does not involve the selection of securities by a portfolio manager. Without a portfolio manager to track the way an index performs, the cost of using a passive strategy is extremely low. It has also been suggested that the additional value provided by a portfolio manager is canceled out by any fees, costs and taxes. <\/p>\n
However, if you possess securities in that index, you will never outperform the index. In addition, if you use a passive strategy, and the market experiences a decline, you will take part in that decrease in value. When making investment decisions, people often consider whether they should use an active or passive strategy. Passive investing attempts to duplicate the returns of the market as a whole. This strategy does not involve the selection of securities by a…<\/span><\/p>\n
\nIn contrast to passive investing, active investing uses a manager who tries to produce returns that exceed the index against which the portfolio is benchmarked. The majority of managers (more…)<\/span><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"