A passive component, also known as a passive device, is an electronic component which can only receive energy, which it can either dissipate, absorb, or store in an electric field or a magnetic field.
Passive components do not need any form of independent electrical power to operate. Passive devices are incapable
of controlling current by means of another electrical signal. There are several types of passive components,
including resistors, capacitors, inductors, and transformers.
As one of the most known benefits of passive investing, low maintenance is something that active investing surely
lacks. After investing in Active Funds, you must monitor fluctuations and price changes constantly. Passive Funds
don't need that, as they are long-term, buy-and-hold investment strategies.
