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Jeffrey Bunderson

Buy and Hold - Active Management

Passive Management (Buy & Hold)

This is a strategy for investors to manage risk by allocating investments among a broad array of asset classes and holding such assets for an extended period of time regardless of market conditions.

  • –  The theory behind this investment style is that markets are efficient which suggests that the price of a security is the fair value price.

  • –  Passive management investments offer broad diversification with generally low expenses and tax efficiency.

  • –  However they do not defend against down markets and do not attempt to beat index returns.

Active Management

This is a strategy for investors where the portfolio holdings are adjusted on a continuing basis in response to market and economic conditions.

    – This strategy offers the potential to beat the market by exploiting inefficiencies in pricing. And, in theory, this strategy has the ability to defend against down markets.

The decision to choose active or passive money management styles should be made in the context of your overall investment objectives and ability to tolerate risk. You may choose to use both strategies in a balanced approach to help achieve your overall investment goals.

This strategy may or may not be suitable for all investors investment objectives. An investor should consider the investment objectives, risk, and charges and expensive associated before investing. The active management approach may involve additional management fees than passive.