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Passive Investment Strategy

Related terms: asset allocation, diversification, investment strategy, portfolio management, tactical asset allocation

What is a Passive Investment Strategy?

A passive investment strategy is an approach where investors aim to replicate the performance of a market index rather than trying to outperform it. This strategy typically involves investing in index funds or ETFs that track specific indices, offering a cost-effective and low-maintenance way to achieve market returns.

Benefits of a Passive Investment Strategy

Passive investment strategies offer several benefits, including lower fees due to reduced trading activity, tax efficiency, and consistent performance aligned with market trends. This approach is particularly appealing to family offices seeking stable, long-term growth with minimal intervention.