Tommaso
Fri Dec 13 2024
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7 answers
1803
What are the drawbacks 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.
Index investment has drawbacks as it's harder to achieve large returns compared to active investment or investing in individual stocks. Since risks and returns in investment are proportional, index investment, touted as low-risk, often yields lower returns.
