Passive investing is not a panacea, just a different way of accessing underlying investments. Whether you go down the active or passive route, good investing tactics such as adopting a long-term time horizon and ensuring your portfolio is sufficiently diversified are crucial. Once you have decided where you want to invest, gaining cheap access to markets via passives is a sensible approach. Adding some active investments at the edges could be a way of building the optimum portfolio to meet your investment needs.
Michelle McGrade is chief investment officer at TD Direct Investing
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