Passive investing is an investment strategy that aims to maximize returns by minimizing buying and selling activities. This approach typically involves investing in index funds or exchange-traded funds (ETFs) that track a specific market index, allowing investors to benefit from overall market growth without the need for active management.
The primary goal of passive investing is to achieve long-term growth while reducing costs associated with frequent trading. By adopting a buy-and-hold strategy, investors can avoid the pitfalls of market timing and emotional decision-making, leading to potentially higher returns over time.