Mutual Funds

Index Funds

Why are index mutual funds or index ETFs preferred by many over buying individual stocks and actively managed mutual funds?

Aside from being able to ride the gains of the current economic cycle without having to spend a formidable amount of time to do so, many experts believe that by investing in index funds of different types, the expenses needed to manage these funds are relatively less when compared with other types of investments. Since expenses are lower, more of the gains of the index can go directly into an investor’s pocket. You should compare expenses related to acquiring different investments, as they have a great effect upon your returns.


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