{"id":30470,"date":"2024-05-27T23:43:23","date_gmt":"2024-05-27T18:13:23","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=30470"},"modified":"2024-05-27T23:44:52","modified_gmt":"2024-05-27T18:14:52","slug":"investment-strategies-active-and-passive-investing","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/investment-strategies-active-and-passive-investing\/","title":{"rendered":"Investment Strategies: Active and Passive Investing"},"content":{"rendered":"

For most things in life, we plan how we want to execute investment strategies. There is a certain method or process that we generally follow to arrive at the best possible outcome. In general, strategising any task helps us go through the process with more ease. If well-executed, strategies prepare you for how to deal with any undesirable outcome along the way. The benefits of planning investments are similar.<\/span><\/p>\n

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One of the most well-recognised benefits of investing, as opposed to simply saving, is that it becomes an essential tool for fighting inflation, while its compounding impact, especially in equities, can be a big help in meeting financial goals.<\/span><\/p>\n

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Want to set your financial goals? Click <\/span>here<\/span><\/a>.<\/span><\/p><\/blockquote>\n

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Like most things in life, though, investing cannot be viewed with a \u2018one-size-fits-all\u2019 approach. Your financial standing, risk appetite, age, responsibilities, and growth ambitions are some of the many factors considered when deciding how you should pursue your journey of investing. In short, your investment strategy is what matters.<\/span><\/p>\n

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To start with, let us divide investing into two broad buckets: active and passive investing. Let us understand each of these in further detail:<\/span><\/p>\n

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Active Management<\/b><\/h4>\n

Simply put, this style of managing money entails trying to better the returns of your portfolio as compared to a certain benchmark. This is done through a combination of stock picking and trying to time the market with the background of the larger macroeconomic situation. Fund managers generally command a certain premium for this kind of money management as compared to a passive investment style.<\/span><\/p>\n

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Strategies in Active Management<\/b><\/h4>\n

Dynamic Asset Allocation<\/b><\/p>\n