Passive investment management is closely associated with:

Passive investment management is fundamentally oriented towards minimizing costs. This approach typically involves investing in index funds or similar investment vehicles that aim to replicate the performance of a specific market index rather than trying to outperform it through active management strategies. By avoiding frequent trading and extensive research associated with active management, passive strategies significantly reduce transaction costs and management fees.

This cost-effectiveness is essential, as it helps investors retain more of their returns over time, particularly given the compounding effect of investment returns. Consequently, investors who favor passive management often prioritize maintaining low costs to enhance their overall investment performance, underscoring the alignment of passive investment with cost minimization.

In contrast, other options involve strategies that do not align with the core principles of passive management. Risk-free investment is more related to the use of treasury securities or other instruments considered very low risk rather than passive investing itself. Tactical asset allocation focuses on making adjustments in response to market conditions, which is an active strategy, and frequent trading is associated with increased costs and the active management approach, contrary to the principles of passive investing.