In this week’s episode, Director of Investments, Jay Pluimer discusses the benefits and drawbacks of Active vs. Passive Investing.
When it comes to your portfolio, you have two choices. Active management is when an investment manager has discretion to buy and sell stocks and bonds they believe will do best, beating other managers and existing benchmarks, while passive investing replicates an existing index. It may sound smart to use an active manager who is personally evaluating your portfolio for your financial benefit, but statistics show it is virtually impossible for active managers to outperform the market over time. Essentially, choosing active managers means betting against the odds, with only a 5 percent chance of beating them.
Always check back next week for more Flourish Insights with Jay Pluimer and don’t forget to check out our insights blog at https://www.flourishinsights.com
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