In the world of investing, there are many different strategies and approaches that individuals can take. From day trading to long term buy and hold strategies, the options are endless. However, for the investment purist, simplicity and minimizing fees are key components of a successful strategy.
The investment purist believes in sticking to the basics and avoiding unnecessary complexities. By focusing on a few key principles, such as diversification, asset allocation, and low cost investing, the investment purist can build a solid foundation for long term success.
One of the biggest enemies of the investment purist is high fees. Fees can eat away at your returns over time, significantly impacting your overall investment performance. That's why the investment purist is always on the lookout for ways to reduce fees and keep costs low.
One way to reduce fees is to invest in index funds or exchange traded funds (ETFs) instead of actively managed mutual funds. Index funds and ETFs typically have lower expense ratios than actively managed funds, making them a cost effective option for the investment purist.
Another way to minimize fees is to avoid unnecessary trading. The investment purist understands that frequent trading can lead to higher costs, so they focus on a buy and hold approach to investing. By holding onto investments for the long term, the investment purist can reduce brokerage fees and other transaction costs.
Additionally, the investment purist may consider using a robo advisor or automated investment platform to manage their portfolio. These platforms often charge lower fees than traditional financial advisors, making them a cost effective option for the investment purist.
In conclusion, the investment purist believes in simplifying their strategy by reducing fees and avoiding unnecessary complexities. By focusing on the basics and keeping costs low, the investment purist can build a solid foundation for long term success. If you're looking to simplify your investment strategy and minimize fees, consider adopting the principles of the investment purist.