What Does Investing Mean Today?

In the UK, an increasing number of people are turning to investing as a means to grow their wealth. Whether saving for retirement or building wealth, investing offers options. But there’s one key question every investor must ask:

Should I go passive or active?

Let’s break down both strategies in a way that’s simple and useful.

What Is Passive Investing?

Passive investing involves purchasing a fund that tracks a market index.

You don’t choose individual stocks.

Instead, you invest in a broad mix of companies through index funds or ETFs (Exchange-Traded Funds).

Key Features of Passive Investing

• Low fees – No active manager involved
• Fewer trades – You buy and hold
• Market matching – Aims to mirror the market, not beat it
• Lower stress – Set it and forget it

Common examples:

• FTSE 100 index funds
• FTSE All-Share ETFs

What Is Active Investing?

Active investing involves selecting individual stocks or entrusting a fund manager to do so on your behalf. The goal is to beat the market by making wise choices.

Key Features of Active Investing

• Professional management (in funds)
• Higher fees – For research and trading
• More decisions – When to buy, hold, or sell
• Higher potential returns – If done well

Common examples:

• Actively managed UK equity funds
• Personal stock portfolios

Main Differences at a Glance

FeaturePassive InvestingActive Investing

Management Style: Hands-off, Hands-on

Cost Low High

Risk Lower (diversified) Varies

Goal Match market returns Beat market returns

Control Limited More choices

Which One Performs Better in the UK?

In many cases, passive funds outperform active ones after fees.

Studies show that most active UK fund managers consistently fail to outperform the market over extended periods.

But some do succeed, especially in small-cap or niche sectors.

Benefits of Passive Investing

• Low cost – More of your money stays invested
• Easy to manage – Ideal for beginners
• Good long-term results – History backs it
• Great for ISAs and pensions – Combine tax benefits with low fees

Benefits of Active Investing

• Chance to outperform – Potential for higher returns
• Flexibility – Choose your own companies or switch funds
• Can avoid market dips – Good managers may protect during downturns
• Tailored to you – Some prefer more control

Which One Suits You Best?

It depends on your goals, time, and risk level.

Choose passive investing if:

• You’re new to investing
• You want long-term, steady growth
• You prefer a low-cost setup
• You don’t want to check your portfolio often

Choose active investing if:

• You have experience or want to learn
• You enjoy following the market
• You believe you (or your fund manager) can beat the index
• You’re fine paying a bit more in fees

Mixing Both Styles

You don’t have to choose one forever. Many UK investors use both.

You could:

• Put most of your money in a passive fund
• Use a smaller part to try active investing

This provides balance — lower risk from passive investments and higher potential from active ones.

Investing Platforms in the UK

Whether passive or active, here’s what you’ll need:

• A brokerage account, like Hargreaves Lansdown, Freetrade, or AJ Bell
• An ISA wrapper – to protect your returns from tax
• Clear goals – short or long-term investing

Most platforms let you invest in both styles. Many offer ready-made portfolios to help you get started.

Where to Learn More

Across the UK, there are events and expos focused on smart investing.

Top Events to Consider

• Investival London – Covers stock market trends and investing styles
• The Money Show UK – Ideal for beginners and hands-on investors
• Investor Meet Company – Online and live sessions with UK-listed firms

Event Details

• Venues: London, Manchester, Birmingham
• Time: Mostly one-day shows or weekend events
• Cost: Ranges from free to £50+
• Nearby stays:
  • Travelodge, Premier Inn, Ibis, or Hilton, depending on the city

Attending these events can help you better understand both active and passive strategies.

You’ll hear from fund managers, analysts, and everyday investors.

Tips Before You Begin

• Always know your risk level
• Set your goal timeline — short, medium, or long-term
• Use tax-free accounts like Stocks & Shares ISAs
• Check the total cost before you invest
• Don’t chase hype — stay focused

Final Takeaway

There’s no one-size-fits-all answer.

Both passive and active investing have a place in the UK market. What matters most is how well the style fits you.

If you’re new, start with passive. It’s simple, affordable, and proven to work.

If you’re curious or confident, consider exploring active options as well — just manage your risk carefully.

Whatever you choose, stay consistent, learn as you go, and keep long-term goals in sight.

Want to explore upcoming UK investment events?
Click here to check event details and ticket options.