Sometimes called “passive investing” , also nicknamed “lazy investing” , passive management is a growing trend. Even within the European Central Bank (or ECB), many bankers are seduced by this method.
Be careful… Don’t let the preceding sentence lead you to believe that this is an investment reserved for the aces of finance. Oh no.
If passive management is so popular, it is because it makes the wealth of individuals and businesses grow. And this is far from being its only asset. However, before going any further, it is necessary to answer a crucial question…
This is a set of methods that maximize the performance of a stock portfolio while spending less time on it.
Unlike active management, this path is not in the action or in the snapshot. Forget all those hours wasted watching the stock market fluctuate to find good stocks.
In passive management, you buy and live life to the fullest while your savings grow visibly. Is it possible to dream better?
Here, it is a question of buying a safe haven and letting it appreciate in value before reselling it (or not). The best-known forms of time-in-market are real estate, but especially precious metals.
Gold bars, ingots, Napoleon coins, … Buying gold is one of the surest ways to build up a nest egg. Indeed, even during stock market crashes or political crises, the price of gold has never fallen. It is even the opposite. Very often, in troubled times, selling gold allows you to quickly replenish your coffers.
For people wishing to buy gold, a portal allows them to acquire it without cost or grueling administrative procedures: Primalgold.com . Just go there to buy an ounce of gold for only €1,200. It is important to clarify that this is not about paper gold or gold stocks. You will be buying physical gold, which is stored in safes in Switzerland.
Once your gold has been acquired, all you have to do is resume the course of your existence. As soon as the conditions are favorable, resell your gold to bail out your coffers.
Concretely, it is a question of investing in a maximum of companies to have permanent incomes of money. It is a well-known formula that has made the success of today’s biggest fortunes.
For those who opt for this form of passive management, it is natural to turn to Exchange trade funds (or ETFs). It is an investment fund listed on the stock exchange that best replicates a stock market index. Generally, to minimize risk, most ETFs focus on CAC 40 companies.
As an EFT investor, you have almost nothing to do. Once the capital has been invested, management is done automatically in exchange for fees. Count 0.25% per year against 1.5% for so-called traditional investment funds. And this is not the only advantage of this process:
Above, some of the advantages of passive investing have been mentioned. However, it would be a mistake to stop there. Although not exhaustive, the list also includes: