Investing in stocks, bonds and mutual funds is a source of income, retirement and wealth for many individuals. With this being said, it can also be a source of expensive fees and taxes for some. There are ways to decrease these numbers and maximize profits though. Passive investing is a smart way to make money work better for the individual. There are a variety of benefits for those who invest using this method. First and foremost, there are less fees associated with those who invest passively. Less trades, equates less trading fees. The tax liability is also decreased as there are less capital gains to report. However, one of the biggest benefits is the return on investment. Since these investors hold, they generally receive bigger rates of return. Those who invest passively can save money and watch their investments really grow.