How to Avoid Closet Indexing

There are two broad categories into which investment portfolios, including funds, can be categorized: actively managed and passively managed.

There are two broad categories into which investment portfolios, including funds, can be categorized: actively managed and passively managed.
Investment in real estate can be a strong addition to your investment portfolio and can improve its diversification.
There are two main approaches to investing in real estate: investing directly in individual properties, or investing in Real Estate Investment Trusts (REITs). Over the past few years, an increasingly larger percentage of investors hold some form of real estate in their portfolios.

Capital gains tax can be a significant expense for many people. Fortunately, there are several strategies that you can use to help manage your capital gains tax. In this article, we discuss some effective tips for managing your capital gains.

Direct investing (also known as self-directed or discount brokerage investing) can offer a wide variety of investment choices from which you can build your investment portfolio. It can give you personal control over your portfolio at lower fees than full-service brokerage/investment firms would charge.
However, direct investing is not suitable for everyone. While many of the investments available through full-service brokerages and investment managers may be available to you through discount brokerages, it is important to determine if direct investing is suitable for you.

Do-It-Yourself (DIY) investing, also known as self-managed or self-directed investing, is when you create and manage your own investment portfolio. DIY investors often use digital platforms, online applications, and discount brokerages to build and manage their portfolios rather than employing the help of a qualified professional for advice or portfolio supervision.
DIY investing may offer you more personal control and lower fees, but making decisions based on incomplete information and without the expertise that comes from training and experience can expose you to a multitude of risks.