Woman uses phone to view stock performance while drinking coffee. Passive investing focuses on participating in the market through diversified investments designed to grow over time.

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Beginner investors may assume successful investing requires constantly monitoring the market, researching stocks and reacting to economic headlines. However, many investors build wealth through a much simpler approach.

Passive investing is built around the idea that long-term success does not require trying to outsmart the market. Instead, it focuses on participating in the market through diversified investments designed to grow over time. For investors who want a straightforward approach to building wealth, passive investing has become one of the most…