On Forbes: Active and Passive Investing

May 29, 2012

In a new post on the Forbes Intelligent Investing blog, NoLoad FundX editor Janet Brown explores the challenges and consequences of active and passive investing.

“By owning index funds, passive investors have the comfort of knowing they’ll never underperform the indexes they own, but they also give up the possibility of ever outperforming those indexes,” Janet writes.

Active investors aim to outperform the market, but as Janet points out, they don’t always succeed. “This is the challenge of all active strategies: there are inevitably times when they don’t outperform.”

Whether investors take an active or passive approach to investing, Janet explains that “they need to have a plan that guides them on what to do when markets change–whether that means sticking with what they currently own or taking action.”

Click here to read the full post.

(To read all of Janet’s posts on the Forbes Intelligent Investing blog, click here).

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