Mutual Funds: Active vs. Passive – Which Fits Your Investing Personality?

• Active mutual funds aim to outperform market benchmarks through professional management, but involve higher fees and uncertain success.
• Passive mutual funds replicate an index, offering lower fees, transparency, and predictability by matching market performance.
• The choice between active and passive investing depends on an investor's personality, risk tolerance, and desired level of involvement.
• Many investors use a hybrid approach, combining passive funds for a stable core with active funds for potential satellite growth.
• Commitment and consistency are crucial for long-term investing success, regardless of whether active or passive funds are chosen.

Why It Matters: It helps you pick the right investment style for your financial comfort and goals.