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Everyone gushes about index mutual funds, and for good reason: They're an easy, hands-off, diversified, low-cost way to invest in the stock market. Index funds are investments made up of stocks that mirror the companies and performance of a market index, such as the S&P 500. Index funds are passively managed and have lower fees than actively managed funds, and often generate higher investment returns. Index funds are well-diversified investments.
This book will help you understand the difference between two common options, mutual funds, and index funds. Much research has been done comparing the two and it's baffling how many people fail to optimize their gains because of a simple knowledge gap. With a simple plan, you can take advantage of the U.S. Market's ability to grow over time.
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