Hands-off investor

Hands-off investor,

Definition of Hands-off investor:

  1. Investor holding a large portion of shares who is satisfied with management decisions and feels no need to be more actively involved. The hands-off investor holds a passive management role within the company, however this can change should the investor become concerned with management actions and decide to intervene.

  2. A hands-off investment strategy is well-suited to many retail investors who may not have the time needed to routinely monitor and research their investments. Hands-on, active management requires investors to continuously keep up-to-date on the positions that they hold. This often requires several hours of research per week. Active managers believe that by doing this work, they can earn higher-than-average returns on their investments. .

  3. A hands-off investor prefers to set an investment portfolio and make only minor changes for a long period of time. Many hands-off investors use index funds or target date funds which make only small and slow changes to their holdings, and therefore do not require much monitoring.

Meaning of Hands-off investor & Hands-off investor Definition