Introduction to Index Funds
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Index funds are made up of the securities of major market indexes. They give investors the opportunity to keep pace with the market.
What you will learn
- What Are Index Funds?
- How Index Funds Work
- Tax and Expense Advantages of Index Funds
What do you know?
Introduction to Index Funds
The securities markets have measurements to which you can compare your own securities. For example, you can consult the Standard & Poor’s 500 Stock Index or the Dow Jones Industrial Average. These will give you an idea of how well your security is performing compared to the market "average." If you would like to achieve the same results as an index but do not want to buy and sell to match the index, you can invest in a type of mutual fund that does that work for you.
