Investing in the stock market can be a daunting task, especially for beginners who may not have the time, knowledge, or resources to actively manage their investments. This is where passive investing comes into play. It's a strategy that aims to build wealth over time with minimal effort and lower costs. In this guide, we'll explore what passive investing is, why it's gaining popularity in India, and how beginners can get started.

What is Passive Investing?

Passive investing is an investment strategy that involves buying and holding a diversified portfolio of securities, typically through index funds or exchange-traded funds (ETFs), that mirror a specific market index. Unlike active investing, where investors try to beat the market by picking individual stocks or timing the market, passive investing seeks to replicate the performance of a particular index, such as the Nifty 50 or the Sensex.