What Are Index Funds ?
| Index fund is a type of mutual fund or a unit investment trust (UIT). The main object of an index fund is achieve approximately the same return as a particular market index, like S&P 500 Composite Stock Price Index, Wilshire 5000 Total Market Index or Russell 2000 Index. |
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The way an index fund achieves it object is by investing in securities (bonds and/or stocks) of companies that are included in pre-selected indexes. Sometimes, these fund use derivatives like options or futures to meet their investment object. More... |
How To Choose An Index Fund
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When you are looking for an index fund to further build up your retirement plan then you have to look for a fund with the following features:More... |
Index Funds Vs Mutual Funds
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Index funds and mutual funds are investment vehicles for investors who want to diversify their investment without investing in multiple stocks. However, there are differences between index funds and mutual funds and it is best to know these subtle differences.More... |
Problems With Index Funds
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As with any investment, there are pros and cons with index funds too. Although many experts believe that the simplicity of investing in index funds and the cost savings that one can derive should make index funds the first choice for investment, there are others who think otherwise. There are problems with index funds and it is in your own interest to learn about them.More... |
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