Tag: index investing

Investing To Grow Or Investing To Save

Investors, most often, fall in one of the following categories: active investors and passive investors.

If you’re a passive investor, you’re likely to have a “buy and hold” strategy. It’s also likely that you will be invested mainly in index-based securities. It’s also likely that your money will be parked in a custom index with proportional securities weighted by their market cap. You will have some large-market-cap stocks in your portfolio and be reasonably diversified by sector and geos. Once you buy these securities, you will hold on to them for a long period of time, until you either need money for other things (so you take it out of your investments) or the market reaches a point where you feel you’ve accumulated reasonable returns.

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