Index funds will be around for a long time
Investing is the act of allocating funds. However, what a lot of people don’t understand about investing is that just allocating funds into an investment plan is not enough. In fact, investments themselves are not a monolith. One of the types of investing is passive investing. The phrase “slow and steady wins the race” best exemplifies passive investing. It is a long-term strategy for building wealth by buying securities mirroring the market indices and holding them long term. This strategy can help in lowering the risk because you’re investing in a mix of asset classes and industries and not an individual stock.
How does it work?
This strategy tries to avoid things like fees. The main goal of passive investing is to help you to accumulate wealth gradually. Also referred to as the buy-and-hold strategy, passive investors don’t seek profits from short-term price fluctuations or market timing. …