Wednesday, June 30, 2010

Secrets of Passive and Active Investment

In the world of investment, there are two main options: passive and active. Whether your money goes into stocks, bonds, money markets or elsewhere, you will need to decide which of these you want to do. Active investments are those that you manage yourself. Which means checking newspapers and online for changes in the market, buying and selling shares or other investments yourself, and generally taking all the responsibility yourself. Passive investment, on the other hand, is when you entrust the management of your investments and money to a third party – such as a financial management company. It's great if you want less hassle, but you do need to make sure that the company you use is legit, and that they k now what they are doing! Whichever option you choose, there is risk, but in investment, and in everything else, no risk means any reward!

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