Hands-Off Investor

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Definition of 'Hands-Off Investor'

A hands-off investor is someone who does not actively manage their investments. They may invest in mutual funds or exchange-traded funds (ETFs) that are managed by professionals. This type of investing is often referred to as passive investing.

There are a few reasons why someone might choose to be a hands-off investor. First, they may not have the time or expertise to manage their investments themselves. Second, they may be risk-averse and prefer to invest in funds that are diversified and managed by professionals. Third, they may simply not be interested in investing and prefer to leave it to the experts.

There are a few things to keep in mind if you are considering becoming a hands-off investor. First, you need to make sure that you understand the risks involved in investing. Second, you need to choose the right funds for your investment goals and risk tolerance. Third, you need to be prepared to stay invested for the long term.

If you are a hands-off investor, there are a few things you can do to make sure your investments are successful. First, you should review your investments on a regular basis to make sure that they are still aligned with your goals. Second, you should rebalance your portfolio as needed to maintain your desired asset allocation. Third, you should keep an eye on the news and economic trends so that you can make informed investment decisions.

Being a hands-off investor can be a great way to invest for the long term. However, it is important to understand the risks involved and to make sure that you are choosing the right funds for your needs.

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