Thursday, 14 August 2014

What is Passive investing again?

Sometimes known as a buy-and-hold strategy, passive investing requires good initial research, patience and a well-diversified portfolio.  Unlike active investors, passive investors buy a security and typically don't actively attempt to profit from short-term price fluctuations. Passive investors instead rely on their belief that in the long term the overall investment will end up being profitable.






With passive investing, you don’t worry about what the price of gold is doing this week. Nor do you spend days buried in company reports trying to evaluate stocks. There’s no need to time the market, pick winning companies, or convince yourself that you have the special powers required to beat other investors. 

As a passive investor, you refuse to play The City’s game instead you use low-cost funds like index trackers called to reap the market’s return and increase your investments slowly.  There really is also a huge amount of evidence showing passive investing is the strategy that usually comes out top compared to believing the latest hot fund manager or investment scheme will be able to beat the market.

Passive investing is also as simple as investing gets. You need not have more than a handful of funds in your portfolio as long as they are spread across the key asset classes.  Passive investing is increasingly the first choice for many investors, with net sales of tracker funds in the UK reaching a record levels over recent years. Enable's experienced Independent Financial Advisors can help you take a look at whether passive investing is the way forward for you.


Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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