Imagine you have painstakingly saved up $100,000 and you’re all ready to invest for a brighter future ahead.

But you are undecided on whether to adopt a hands-on approach and invest in stocks, or, park it under passively-managed instruments like Robo-advisors or Index Funds.

After all, this has been a decade long debate between “active” and “passive” investing, and, you find merits in both the approaches too.

Today, we aim to explore deeper into the pros and cons of these 2 concepts and introduce a better alternative which you may have missed out on.

A passive investment strategy can be referred to as a more hands-free approach where you aim to buy into an instrument and just hold the investment for the long term.

One common example is to invest in Exchange Traded Funds (ETFs), where they mirror the performance of an entire market index