Investing can often seem like a complex and overwhelming process, especially with the multitude of strategies and options available. For many, the prospect of actively managing investments and constantly monitoring their portfolio might feel like something they need to do. In reality that will only create bad habits like timing the market or buying investments for a short period of time only for a quick gain, or chasing past performance. This is where passive investing outshines—a solution that can simplify the process and prevent people from making bad decisions in investing.
Passive investing is a strategy that aims to replicate the performance of a specific index or market segment rather than trying to outperform it. The primary goal is to achieve long-term growth with minimal trading and lower costs. This approach contrasts with active investing,where fund managers and investors actively make buy and sell decisions to beat the market.
To implement a passive investment strategy,consider the following steps:
Passive investing offers a straightforward, cost-effective, and efficient way to grow your wealth over the long term. By adhering to the principles of diversification, low costs, and a long-term focus, passive investors can achieve consistent performance with reduced risk. Whether you're a seasoned investor or just starting, passive investing provides a reliable strategy to help you reach your financial goals. If you are wondering what the best strategy for you is, click here to schedule a free consultation.
This information has been prepared by Jai Gandhi who is an Investment Advisor for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces in which they are registered.
iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.
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