Passive vs. active investing: Which strategy is best for impact investors
Normally, when we speak about active and passive investing, we are comparing two highly debated investment strategies.
Active investing usually employs a portfolio or money manager that charges a fee to make specific investment selections, trades, re-balancing, and tax management of an account. Whereas passive investing usually uses a buy and hold strategy typically with index funds that follow one of the major indices like the S&P 500 or Dow Jones.
The debate centers around the costs associated with each of these investment strategies and whether it affects your overall portfolio performance. There is credible research on both sides of this debate. The bottom line is there are pros and cons to each of these strategies. The use of…
