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Differences Between Active and Passive Investing

Investing can be overwhelming, especially when it comes to choosing between active and passive investing. Active investing involves trying to outperform the market by making strategic investment decisions based on market trends, while passive investing involves tracking a market index and aiming to match its performance. Both approaches have their advantages and disadvantages, such as potentially higher returns for active investing, but with higher costs and risk, and lower costs and risk for passive investing, but with lower returns. Ultimately, the decision to pursue an active or passive investment strategy should be based on your investment goals, risk tolerance, and personal preferences.

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