Question: What are Passive and Aggressive Investment?
Each investment type includes the elements of chance and risk.
“Chance” is the profit on your investment and the “Risk” is loss of your own investment funds.
There are two types of investment.
- Passive investment
- In a investment of this type, the chances are greater than the risk, but the returns will usually be low relative to the investment.
- Aggressive investment
- In a investment of this type, the chance is lower than the risk, but the returns will usually be high relative to the investment.
The way an investor trade depends on his/her strategy on certain financial instruments.
Both Passive and Aggressive investment methods are used by professional investors.
