Passive Investment

Passive investment is a strategy where investors aim to earn returns that mirror the overall market's performance rather than trying to beat it through active buying and selling. This typically involves purchasing a diversified group of assets like index funds or ETFs that track a specific market index, such as the S&P 500. Because it requires less frequent trading and research, passive investing generally has lower costs and risks. It’s suited for investors who prefer a long-term, hands-off approach, trusting that the market's growth over time will provide steady returns.