Why passive funds make sense for stressed investors

One sunny morning, Neil walked into the garden and saw his dad reclining peacefully in a chair, sipping coffee as if the markets had never fallen. “Good morning, Papa! You look suspiciously relaxed. Did your stocks finally stop misbehaving?” His dad laughed. “Not exactly. But I don’t invest in individual stocks much anymore. I’ve shifted most of my portfolio to index funds.” Neil blinked. “Wait, what? You’re the one who got me hooked on direct stock investing in the first place!” “I did,” his father admitted. “And stock picking is a great way to build wealth—if you enjoy tracking companies, reading annual reports and occasionally living with stress.” Neil groaned. “Don’t remind me. My portfolio was bleeding last month. I stuck with my picks, but I wasn’t sleeping well.” “That’s the thing,” his dad said. “Stock investing takes more than conviction. It needs emotional stamina. Every earnings miss, every global tremor, you feel it. And the more research you do, the harder it hits when something goes wrong.” Neil nodded. “Exactly! I feel like I’m carrying the whole market on my shoulders sometimes.” His father smiled. &ld

This article was originally published on June 30, 2025.