... ETFs that passively track the market rather than active funds attempting to outperform indices. This trend is driven by, firstly, the lower fees associated with passive instruments, and secondly, statistics showing that only a small number of actively managed funds consistently outperform the market over the long term. The share of passive strategies is steadily increasing, with major providers attracting significant capital annually through affordable index product lines. Competition compels traditional players to lower fees and seek new strategies. There is a trend toward converting ...

... participation in choosing and managing your portfolio (for example, buying and selling shares yourself, regularly monitoring the market). Passive investments mean that money works with virtually no participation on your part – for example, in index funds or through trust management, where decisions are made by professionals. For beginners, a more passive approach is often preferable at first, in order to get used to it without unnecessary stress. Investment funds (mutual funds, ETFs). Funds are a way to invest indirectly. A specialized management company collects funds from many investors and ...

... short term, thereby beating the market, specifically exceeding the performance of indices such as the S&P 500. It is important to remember that active management comes at a higher cost, which also increases the risk of underperformance. Conversely, passively managed funds strive merely to match market performance while minimizing risks and management costs. Interestingly, the majority of actively managed funds have failed to surpass their respective indices. According to a study by Standard and Poors, by the end ...

... such an approach, money quickly runs out, and so does the individual's standard of living. To avoid this, it is essential to manage finances wisely, investing them in businesses, stocks, and other avenues that can provide passive additional income. At this stage, potential investors encounter challenges. Many simply do not know where to invest their money to not only achieve stable profits but also to retrieve their funds in the shortest possible time if necessary. Understanding the prospects of the investment market can be aided by Sergey ...

... be found on his website: www.sergeytereshkin.ru . Key Factors There are both active and passive methods of investing. Individuals can either take an active role in augmenting their capital or entrust their money to experienced specialists who will manage the funds at their discretion. According to Sergey Tereshkin, investors should adhere to several rules: The safest option is a bank deposit. This is a passive type of investment, but it is also the least profitable. Often, the interest does not even cover inflationary fluctuations. To achieve maximum profit, preference should be given to long-term deposits, as they offer significantly higher interest ...