Investing: it’s easier than you think

As stock markets go through a rocky period, passive investing is continuing to attract investors.

Funds managed by a well-paid stockpicker often claim to provide better returns even when share prices are falling because, in theory, they are able to own the best companies.

British investors, though, seem to be sceptical of these claims. UK savers have invested a net £2.8 billion into funds that use a computer algorithm to track the return of a popular stock market index, such as the S&P 500 or FTSE 100, in the past 12 months, according to estimates by the data provider Morningstar. These are called passive funds because they don’t actively buy and sell holdings.

The good news is that passive investing is simple. You don’t need