Index Funds for Stocks & Bonds
Very few Mutual Funds have outperformed the overall stock market in the past 40 – 50 years! It is very easy and relatively safe to invest in the whole stock market or in various ‘slices’ of the market by using Index funds. They basically track a particular market segment (S&P 500, Mid Cap, Small Cap, Emerging Markets, Real Estate Investment Trusts, Bonds, etc) without the volatility presented by an individual company’s stock. Whether or not you own any Index Funds, you should at least be aware of their easy availability and low cost structure. In fact, no mutual fund from any of the brokerage houses has as low an expense ratio as an Index Fund.
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