Statistics tell us that 55% of Americans own financial stocks of some kind.
Buying and selling shares of companies can be a great way to make some extra money. Some people make successful careers out of predicting the price movements of publicly-listed firms. Many people also choose to undertake active investments themselves, such as by setting up a company.
However, you don’t have to take the risk of investing this way if you want exposure to the market. Passive investments offer opportunities to make money without pinning your fortunes to your stock-picking ability or business acumen.
Read on to learn the key advantages of passive investing.
Passive Investments Are Easy
Active investment can be great. You get to really get your hands dirty in learning the various details of the business you’re involved in, and you get to see your investment succeed or fail on the back of your own hard work and ingenuity.
However, not everyone has the time for that. If you have a full-time job that you don’t plan to leave, chances are you don’t have the right amount of hours in the day to be undertaking that kind of work. If you have family or other commitments, you might not have any spare time at all!
Passive investing offers you a way to make your savings work for you without taking up any of your time. That leaves you free to think about the things that really matter.
Passive Investments Are Cheap
If you choose to invest actively, there can often be a lot of expenses involved. For example, if you set up a company, you’ll have to hand over a lot of money for property or equipment soon after you start trading. Even if your company is a successful one, you probably won’t start to see real profit until after this initial outlay is paid off.
However, with passive investments, you only have to pay small fees. This is much easier for investors near the beginning of their journey.
Passive Investments Are Lower-Risk
Perhaps the best part about a passive investment is the fact that a professional is in charge of its fate. You don’t have to be an expert on monetary matters to see your principal stake grow.
If you were to undertake an investment by yourself, without any input from a career investor, you’d be running a huge risk. If your investment tanked, you could lose all your money.
Making Steady Money By Choosing a Passive Investment
Passive investments might not be as much of a white-knuckle ride as individual stocks or self-owned businesses. However, if you’re after a reliable, long-term vehicle with a good chance of making steady returns, passive investing is for you.
Our passive investments return funds to your account every quarter. All you have to do is sign up, buy in, and watch the money start to flow in. We take care of all the hard work.
If you’d like to learn more about what one of our passive investments might add to your portfolio, contact us today.