Investment Fundamentals

Passive Investing

Definition

What is Passive Investing?

An approach that seeks to track a market index or rule-based portfolio with limited discretionary trading.

Example in practice

An index fund holds the companies in its benchmark rather than trying to select winners.

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The original amount of money invested or lent, excluding later returns.

Money or other resources committed to produce income, growth, or another economic benefit.

An asset or commitment of money made with the expectation of future income, growth, or both.

Anything with economic value that can be owned or controlled.

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