Passive investing is a long-term strategy for building wealth by buying securities that mirror stock market indexes and then holding those securities for a long period of time.

To understand passive investing, think of the saying, “slow and steady wins the race.”

“The goal of you investing this way is that you basically want to replicate the returns of that particular market index,” says Rianka R. Dorsainvil, a certified financial planner in Lanham, Maryland.

Like fine wine, the longer you hold your investments, the longer they have to mature and provide decent returns.

The main difference between passive and active investing is that active investing involves more frequent…