Passive Portfolio Management

In the span of 30 years, passive management has progressed from an oddball academic theory to the cornerstone of institutional investment portfolios, representing roughly 40% of equity assets. If individual investors continue their historic pattern of gradually emulating the strategies pursued by institutional investors, index funds are poised for substantial growth, since less than 5% of individual investor assets currently utilize this approach. Employing a portfolio of passively managed index funds can enable any investor to achieve their financial goals with greater certainty and less risk and are worth an investor's consideration.