What are the disadvantages of passive investment?

There are several disadvantages of passive investment, including:<br/>1. Limited investment options: Passive investing is often limited to index funds and ETFs that track a specific market index. <br/>2. Preset limits: Passive funds lock into a predetermined set of investments with little variation between funds. <br/>3. Greater risk: Passive investing involves more risk compared to active investing, as it is more vulnerable to market fluctuations. <br/>4. Limited flexibility: Passive funds are less flexible than actively managed funds, as they are constrained by the underlying index they track. <br/>5. Ultra-low fees: While passive investing offers lower fees, it still charges a management expense ratio, which can vary depending on the fund.