passive management

Passive management is an investment strategy that aims to replicate the performance of a specific market index rather than trying to outperform it. Instead of frequently buying and selling stocks based on predictions, passive management typically involves buying a diversified set of investments and holding them for the long term. This approach often has lower fees and less trading activity, making it a more cost-effective option for many investors. The goal is to achieve returns that mirror the overall market performance, rather than taking risks to chase higher returns.