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Summary of Choosing an Index Fund

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Summary of Choosing an Index Fund

If you can’t beat the market (as some say), then why not join it? Index funds let you invest in a portfolio that closely mimics a particular index so its performance should be comparable to the market it tracks.

The only question is, which index fund should you choose? While index funds as a whole generally share advantages, the extent to which they share those advantages differs, sometimes a lot. Tax efficiency and costs, for example, are not all the same across funds. Do some research, take your time, and weigh the pros and cons of several index funds before choosing one.

What you have learned

  1. Know Which Index the Index Fund Follows
  2. Know the Tax Effects of Index Funds
  3. Know the Costs of Index Funds

Find out what you have learned