{"type":"document","data":{"id":"e1e3602d-f066-4afb-abbc-3e24312f7cc0","localeString":"en-GB","publishDate":"2025-10-09T11:33:09.725+02:00","contentType":"onecms:editorialPage","hasMacro":false,"flexPageMetadata":{"afmBanner":false,"robotInstruction":{"noIndex":false,"noFollow":false},"description":"Discover the differences and how ING can support you in making a choice"},"mainHeaderZone":{"componentType":"editorialHeader","coreHeader":{"title":"The difference between active and passive investing","body":"You want to grow your money but you are unsure where to start? Often you will meet two strategies: active and passive investing. \r\nWith an active strategy you or experts manage your investment portfolio actively, making conscious choices into what to invest in. \r\nWith a passive strategy, often referred to as “Hammock investing” you are satisfied with market performance and passively follow a specific index or basket of financial instruments, often at a lower cost."},"backLink":{"textLink":{"url":"/en/individuals/investing","text":"investing"}},"date":"2025-10-09","readingTime":3},"flexZone":{"flexComponents":[{"componentType":"sectionTitle","title":"What is active investing?"},{"componentType":"paragraph","richBody":{"value":"<p><span><span><span><strong>Active investing</strong> means making <strong>conscious and targeted investment decisions. </strong>This can be done by yourself as an individual investor or by fund managers that manage the investment solutions for you. </span></span></span></p><p><span><span><span>Main benefits are: </span></span></span></p><ul><li><span><span><span><span>Within an active strategy you have the<strong> flexibility</strong> to sidestep sectors or companies you don’t want to have in your portfolio.</span></span></span></span></li><li><span><span><span><span>A fund manager evaluates the markets constantly allowing to make <strong>tactical moves</strong> during fast-changing markets.</span></span></span></span></li></ul><p><span><span><span>The main trade-offs are: </span></span></span></p><ul><li><span><span><span><span>To select the right financial instrument research and specific skills are required. This typically means higher costs, that can have an influence on your return. </span></span></span></span></li></ul>"}},{"componentType":"sectionTitle","title":"What is passive investing?"},{"componentType":"paragraph","richBody":{"value":"<p><span><span><span>Passive investors are satisfied with an approach that mirrors, for example, a market index and typically invest in index funds or <a href=\"https://www.ing.be/en/individuals/investing/trackers-etf-investment\">ETF’s (also called trackers).</a> </span></span></span></p><p><span><span><span>The main benefits are </span></span></span></p><ul><li><span><span><span>Lower fees: generally speaking fees are lower as index funds are not actively managed but track a specific basket of financial instruments. </span></span></span></li><li><span><span><span>Diversification: with a single ETF in, for example a world index, you can immediately invest in 100’s of different companies, reducing the individual stock risks.</span></span></span></li><li><span><span><span>Less time intensive as the research you will need to do will be more limited  </span></span></span></li></ul><p><span><span><span>The main trade-offs are:</span></span></span></p><ul><li><span><span><span>By design you are satisfied with the performance of the index you are following, and will not outperform it.</span></span></span></li><li><span><span><span>With passive solutions it is more difficult to quickly adapt to ever changing market circumstances.</span></span></span></li></ul>"}},{"componentType":"sectionTitle","title":"ING's solutions"},{"componentType":"paragraph","richBody":{"value":"<p><span><span><span>At ING we got you covered! We offer different options depending on your personal investment style. </span></span></span></p><p><span><span><span>Prefer passive investing? You can purchase a wide selection of <a href=\"https://www.ing.be/en/individuals/investing/trackers-etf-investment\">ETF’s</a> via <a href=\"https://www.ing.be/en/individuals/investing/ing-self-invest\">ING Self Invest</a>. </span></span></span></p><p><span><span><span>Prefer to trade actively by yourself? Purchase individual instruments via <a href=\"https://www.ing.be/en/individuals/investing/ing-self-invest\">ING Self Invest</a>?</span></span></span></p><p><span><span><span>Want to build up a tailor made portfolio based on your needs? <a href=\"https://www.ing.be/en/individuals/investing/investment-advice\">Discover investing with advice</a> </span></span></span></p><p><span><span><span>Want to start investing in ING’s strategy in a digital way?  Discover <a href=\"https://www.ing.be/en/individuals/investing/easy-invest\">ING Easy Invest</a></span></span></span></p>"}}]},"legalZone":{"flexComponents":[{"componentType":"paragraph","title":"Legal mentions","richBody":{"value":"<p><span><span><span>Fund means an &quot;undertaking for collective investment&quot; (= UCI). UCI is a general term which refers to institutions that obtain their financial resources from the public and whose business consists in managing a portfolio of financial instruments. The term &quot;funds&quot; therefore includes both ICVC (variable capital) and ICFC (fixed capital) investment companies and mutual funds as well as their sub-funds. </span></span></span></p>"}}]}}}