Should you be an active or passive investor? Or both? How to choose

Open this photo in gallery:

Balancing returns against their potential risks is the foundation of any portfolio. It’s often best achieved by understanding how the portfolio’s securities are managed, whether passively or actively.GETTY IMAGES

With two adult children in their early 20s who are just getting into investing, Yuko Girard has a front-row seat to the challenges that new investors face.

“They tend to forget about risk. As people just getting into it, it’s all about return,” says the portfolio manager with Scotiabank’s multi-asset management team in Toronto. “They don’t know or realize yet that risk and return come together.”

Ms. Girard and other investment professionals say balancing returns against their potential…

Source link