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Mitlin Financial Inc. - An SEC Registered Investment Advisor - Diversification

Mitlin Minute- Passive vs. Active Investing

This edition of Mitlin Minute is the final edition in a three part series on Passive vs. Active investing. This edition discusses Passive vs. Active investing. We highly recommend that you view all three episodes to gain a better understanding of both passive and active investing.

 

 Disclaimer: This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

Mitlin Minute-Active Investing

This edition of Mitlin Minute is the second in a three part series on Passive vs. Active investing.  This edition discusses Active investing.  Stayed tuned for the final episode which will cover Passive vs. Active investing.

 

 

Disclaimer: This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

Passive vs Active Investing

Now that we have a working knowledge of both passive and active investing, let’s compare the two. While some individuals may be best suited for a passive approach, others may find active investing to be a better choice. There are many different components that must be analyzed and assessed before deciding whether actively managed mutual funds or passively managed index funds are the best fit for your own facts, circumstances and financial future.

            There is no such investment or strategy that can possibly fit the needs of every investor. It is crucial that you, as the investor, work with a seasoned financial professional who can educate and guide you appropriately. An individual that would be best suited by passive investing is someone who is looking for a simple, cost effective method of investing. As a passive investor, you must be content to perform as well or as poorly as the index. Meanwhile, an active investor believes that portfolio managers can add value to their portfolio by discovering opportunities in the markets that will allow them to outperform their appropriate benchmarks.