Index fund is a type of mutual fund or ETF that tracks a stock market index such as S&P 500 Index Fund, Nasdaq 100 Index Fund.
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How it Differs from Individual Stocks? An Index Fund contains multiple stocks, unlike buying a single company's stock.
It provides built-in diversification, reducing the risk of individual stock losses.
Index Funds are good way to invest passively. Historically, Index Funds tend to perform well over long periods.
Passive investing has benefit of lower fees due to less active management and less effort required— no need to pick and monitor individual stocks.
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Choose an option
A type of savings account
A fund that tracks a specific market index
A collection of random stocks
A collection of cars
It invests in multiple stocks at once
It only invests in one company
It shows index
It doesn’t invest in stocks at all
They require less management and have lower fees
They guarantee high returns every year
They guarantee 25% returns every year
They are risk-free investments
Mutual Funds, Index Funds or ETFs?
How to start investing in Index Funds
Myths & Mistakes in Index Fund Investing
