Question

Lydia sells her ancestral property for a handsome amount of money. she invests this money in various securities. she decides not to trade the securities for a while and lets her money increase with the growth of the overall market. however, after almost eight years, when she feels that the value of the securities has risen considerably, lydia sells her stocks and receives high returns on her investment. in this scenario, lydia has used the _____ investment strategy.

Answer 1

This is a passive investment strategy meaning that she is not actively trading her stocks. This type of strategy is usually tied to an index fund or strategy that rises and falls with the overall market.