Passive investing means investing in a broad market index or ETF without trying to beat the market. Its significance in modern markets is that it offers low-cost, long-term growth for investors without the stress of choosing individual stocks. It is a simple and smart way to build wealth steadily over time.

What Is Passive Investing?

Passive investing is a strategy where you invest in market indexes like Nifty 50 or Sensex instead of picking individual stocks. It is about buying and holding investments for a long time and letting the market grow your wealth. This method does not require daily monitoring or trading.

Why Is Passive Investing Popular Today?

Passive investing is popular because it is easy, low-cost, and has shown good long-term returns. Many people, especially new investors, prefer this strategy as it does not require expert knowledge. With more access to index funds and ETFs, passive investing has become the first choice for long-term wealth building in India and globally.

How Does Passive Investing Help Reduce Costs?

Passive investing costs less because there is no active fund manager or frequent buying and selling of stocks. You simply follow the index. This means you pay lower fees and charges, which helps your money grow more in the long term. Lower costs are one of the biggest reasons why passive investing is attractive.

Is Passive Investing Better Than Active Investing?

For most people, passive investing works better because it is safer and more consistent. Active investing tries to beat the market, but many active funds fail to do that over time. Passive investing follows the market, so when the economy grows, your investment grows too. It is less risky and less stressful.

Who Should Choose Passive Investing?

Passive investing is ideal for beginners, busy professionals, and anyone looking to build long-term wealth without daily market tracking. If you want to invest smartly with low risk and minimum effort, passive investing is a great option. It also works well for people saving for goals like retirement, home buying, or children's education.

How Can You Start Passive Investing?

You can start passive investing by investing in index mutual funds or ETFs. All you need is a demat account and a clear goal. Pick a good index like Nifty 50, invest regularly, and stay invested for many years. With time, your money grows along with the market. No need to time the market or pick individual stocks.