Self-directed investing and passive investing

Passive investing can be a good way to get exposed to the capital markets as a beginner and of course – it is not risk-free. However, some investors decide to take matters into their own hands. That is when self-directed investing comes into place.

Ben Reynolds from Sure Dividend gave a quick thought about the differences between self-directed investing and passive investing below:

 

“Investors who have an interest in analyzing businesses and stocks would be well served to look into self-directed investing into individual securities rather than passive investing.  For some people, finding quality investment opportunities in the stock market is a rewarding use of time.  It can be intellectually rewarding as well as financially rewarding.

For investors who are looking for broad market returns and who do not want to spend their time analyzing stocks, passive investing is certainly the preferred choice.”

-Ben Reynolds, Sure Dividend

Self-directed investing and passive investing

Where to look for more?

Hope you liked this quick rundown on index funds. If you’d like to see more, navigate to one of the articles below:

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