[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”3.22″][et_pb_row admin_label=”row” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”]<\/p>\n
We discuss Passive vs. Active Investment Management and the factors, like forecasts and statistics, that make the best strategy for you.<\/p>\n
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Over the past few decades, there has been an ongoing debate over which investment style works best\u2026active vs. passive management. There are statistics that support both styles. For example, it is believed that passive management may produce better results in a stock market that has more transparency, such as the U.S. stock market vs. the Chinese stock market. Others believe that active managers may produce better results as markets peak and then decline. Costs are obviously a factor, however, there is not as much of a cost difference as there used to be years ago. All that being said, let\u2019s define both investment styles to try to get a better understanding of each.<\/p>\n
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Passive investing is an investment strategy that aims to maximize returns over the long run by minimizing transactional costs, tax liability, and management expenses. The belief is that the sum of all of these costs in an active portfolio creates a drag on performance. An example of a passive investment is an S&P 500 index fund which only holds the 500 stocks that comprise the S&P 500. Passive investors do not believe in \u201ctiming the market\u201d\u2026they believe in \u201ctime in\u201d the market.<\/p>\n
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Active management is the use of an actual person or team who actively manage a fund’s portfolio. Active managers rely on analytical research, forecasts, and their own judgment and experience in making investment decisions on what securities to buy, hold and sell. For example, a fund manager may have extensive experience in a specific sector, potentially resulting in the fund beating benchmark returns. Actively managed funds also have the flexibility to make transactions to offset tax liability, possibly resulting in tax efficiency.<\/p>\n
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The answer to this question is quite simple – there is no best strategy. It depends on many different factors, tax strategies, statistics, and beliefs. Here at Frisch Financial, we can help determine which investment style makes the most sense for you. Our specialty is to help customize an investment strategy based on your specific goals and needs. Let\u2019s figure it out together.<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.4.3″ global_module=”4195″][et_pb_row _builder_version=”4.4.3″ background_color=”rgba(117,117,117,0.3)” custom_margin=”||||false|false” custom_padding=”||0px||false|false”][et_pb_column type=”4_4″ _builder_version=”4.4.3″][et_pb_text _builder_version=”4.4.3″ header_3_font=”|800|||||||” header_3_font_size=”25px”]<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_5,1_5,1_5,1_5,1_5″ use_custom_gutter=”on” gutter_width=”2″ _builder_version=”4.4.3″ background_color=”rgba(117,117,117,0.3)” custom_margin=”||||false|false” custom_padding=”|102px|||false|false”][et_pb_column type=”1_5″ _builder_version=”3.26″][et_pb_image src=”https:\/\/frischfinancial.com\/staging\/wp-content\/uploads\/2019\/12\/bottombrand.png” align=”center” _builder_version=”4.4.3″ transform_scale=”208%|208%” width=”100%” width_tablet=”35%” width_phone=”” width_last_edited=”on|tablet” module_alignment=”center” custom_margin=”|||0px|false|false” custom_margin_tablet=”|||32px|false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” custom_padding=”0px|11px|25px||false|false” mix_blend_mode=”hard-light” module_alignment_tablet=”center” module_alignment_phone=”” module_alignment_last_edited=”on|phone”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.26″][et_pb_text _builder_version=”4.4.3″ text_text_color=”#000000″ text_orientation=”center” custom_margin=”|||-97px|false|false” custom_margin_tablet=”|||0px|false|false” custom_margin_phone=”|||0px|false|false” custom_margin_last_edited=”on|tablet”]<\/p>\n
445 Broad Hollow Road [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.26″][et_pb_text _builder_version=”4.4.3″ text_text_color=”#000000″ custom_margin=”|||-46px|false|false” custom_margin_tablet=”|||0px|false|false” custom_margin_phone=”|||0px|false|false” custom_margin_last_edited=”on|tablet”]<\/p>\n 1140 Avenue of the Americas [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.26″][et_pb_text _builder_version=”4.4.3″ text_text_color=”#000000″]<\/p>\n 2202 N. West Shore Blvd [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.26″][et_pb_text _builder_version=”4.4.3″ text_text_color=”#000000″]<\/p>\n 777 Westchester Ave [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" [et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”3.22″][et_pb_row admin_label=”row” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”] We discuss Passive vs. Active Investment Management and the factors, like forecasts and statistics, that make the best strategy for you. Over the past few decades, there has been an ongoing debate over which investment style works […]<\/p>\n","protected":false},"author":3,"featured_media":761,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"\n We discuss Passive vs. Active Investment Management and the factors, like forecasts and statistics, that make the best strategy for you.<\/p>\n\n\n\n <\/p>\n\n\n\n Over the past few decades, there has been an ongoing debate over which investment style works best\u2026active vs. passive management. There are statistics that support both styles. For example, it is believed that passive management may produce better results in a stock market that has more transparency, such as the U.S. stock market vs. the Chinese stock market. Others believe that active managers may produce better results as markets peak and then decline. Costs are obviously a factor, however, there is not as much of a cost difference as there used to be years ago. All that being said, let\u2019s define both investment styles to try to get a better understanding of each.<\/p>\n\n\n\n Passive investing is an investment strategy that aims to maximize returns over the long run by minimizing transactional costs, tax liability, and management expenses. The belief is that the sum of all of these costs in an active portfolio creates a drag on performance. An example of a passive investment is an S&P 500 index fund which only holds the 500 stocks that comprise the S&P 500. Passive investors do not believe in \u201ctiming the market\u201d\u2026they believe in \u201ctime in\u201d the market.<\/p>\n\n\n\n Active management is the use of an actual person or team who actively manage a fund's portfolio. Active managers rely on analytical research, forecasts, and their own judgment and experience in making investment decisions on what securities to buy, hold and sell. For example, a fund manager may have extensive experience in a specific sector, potentially resulting in the fund beating benchmark returns. Actively managed funds also have the flexibility to make transactions to offset tax liability, possibly resulting in tax efficiency.<\/p>\n\n\n\n The answer to this question is quite simple - there is no best strategy. It depends on many different factors, tax strategies, statistics, and beliefs. Here at Frisch Financial, we can help determine which investment style makes the most sense for you. Our specialty is to help customize an investment strategy based on your specific goals and needs. Let\u2019s figure it out together.<\/p>\n","_et_gb_content_width":""},"categories":[13],"tags":[],"yoast_head":"\n
<\/span>Suite 215<\/span>
Melville, NY 11747
<\/span>P: 516-694-7900
F: 516-694-7901<\/span><\/p>\n
9th Floor
New York, NY 10036
P: 212-983-8444
F: 212-983-8151<\/p>\n
Suite 200
Tampa, FL 33607
P: 813-639-7580
F: 813-639-7501<\/p>\n
Suite 101
White Plains, NY 10604
P: 914-696-0800
F: 914-696-0808<\/p>\n
\n\n\n\nPassive Investing<\/h3>\n\n\n\n
Active Investing<\/h3>\n\n\n\n
Which is the best strategy?<\/h3>\n\n\n\n