Passive Investing done the right way

Since the most recent Market Crash 2007-09 Passive Investing - mostly by using ETF's - has gained in popularity, and rightly so. But Investors should be careful not do add an additional layer of costs when they pay a commission or fee to a Financial Adviser or Fund Platform or Provider. The majority of liquid investments (i.e. listed shares in contrast to property or private equity investments) can and should be allocated to low-cost instruments. A good spread among different asset classes (bonds - high grade, high yield and emerging market bonds, government bonds, equities - large and small caps, emerging markets, international issues, currencies) is still a tricky decision to make but here the guideline should be the market cap as well as occasional rebalancing in a contra-cyclical fashion.