Passive Investing - Why it works and what to watch out for.
Passive investing strategies offer a simple, low cost certainty of achieving (close to) market returns. If that is enough to meet your needs, there is a strong argument to go no further and do no more. That is what passive funds are designed to do, and they’re very good at it.
At the same time, we must be aware that investing involves risk, and with every opportunity it is important to have awareness of the potential issues.
If passive investing is a proven strategy but has its challenges, what should the investor do. Is there a better path or something else we should be doing with our portfolios to improve outcomes?