Passive Vs Active Investing, Which one is the best?

Passive investing is the new ''fad' for accumulating wealth but that doesn't necessarily mean it's the best. What do you think?




Intro Transcript


00:00

You know what's my view on this? I think you need a bit of both I've never been

00:04

one of the people that say let's put it all into passive because it's really

00:07

cheap, cheap as chips and off we go. I've never taken the view that it

00:13

should all be in active management because the active manager

00:17

will always outperform the market because that's not true it's about a balance

00:22

between the two.

00:26

Beauty lies in the action of living your everyday,

00:29

freedom is knowing it'll still be there tomorrow.

00:45

I think it's really important that you have that degree of separation because

00:47

when you're in the pit and you can potentially get biases

00:52

or feeling as though you're right because you've had a couple wins in a row

00:56

and then also you're emotionally invested in it so when things go down

01:00

that's a direct impact on your income so you likely to take greater risk.

01:04

In terms of a dollar cost averaging implementation sort of

01:09

thing you could potentially just save into the fund every month that would be

01:13

a way to implement the dollar cost averaging, but, there's actually quite an

01:17

interesting debate at the moment going on between, well I think it was initiated by

01:22

the Financial Markets Authority, and it was talking about active versus passive.

01:25

So I'm wondering if you could talk about the pros and cons of either?

More than happy to help in any way that I can

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