Cryptocurrency Q&A What are the weaknesses of index investment? The disadvantage of index investment is that it is harder to get a big return compared to active investment and investment in individual stocks. Risks and returns in investment are basically proportional, so index investment, which is said to be low in risk, is likely to be less returned.

What are the weaknesses of index investment? The disadvantage of index investment is that it is harder to get a big return compared to active investment and investment in individual stocks. Risks and returns in investment are basically proportional, so index investment, which is said to be low in risk, is likely to be less returned.

Leonardo Wed Dec 11 2024 | 7 answers 1430

Index investment has weaknesses such as difficulty in achieving large returns compared to active investment or investing in individual stocks. Since risks and returns are proportional in investment, index investment, known for its low risk, is likely to yield lower returns. What are the weaknesses of index investment? The disadvantage of index investment is that it is harder to get a big return compared to active investment and investment in individual stocks. Risks and returns in investment are basically proportional, so index investment, which is said to be low in risk, is likely to be less returned.