Summary of Index Funds
(5 of 5)
Summary of Index Funds
Some say you cannot beat the market. So why not join it? Many try to beat "the market" only to be disappointed that their portfolios didn’t do as well as the S&P 500 or the Dow Jones Industrial Average. Index mutual funds provide a way to invest in a portfolio that closely mimics a particular index so it will perform at least as well as the market it tracks. These portfolios have the added advantage of lower costs due to their passive management.
If you are looking for an investment that keeps pace with a particular investment market, then index mutual funds may be worth looking into.
Practical Ideas I Can Start with Today
- Choose a mutual fund based on my investment objectives and my risk tolerance. Use this calculator to estimate how expenses can impact my returns.
- Begin buying mutual fund shares on my own or through a broker.
What you have learned
- What Are Index Funds?
- How Index Funds Work
- Tax and Expense Advantages of Index Funds
