How to Invest in Index Funds: A Beginner's Guide - Deepstash
What is an Index Fund?

An index fund is an investment that tracks a market index, typically made up of stocks or bonds.

Index funds typically invest in all the components that are included in the in...

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How to Invest in Index Funds: A Beginner's Guide

fool.com

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What Are the Three Major Stock Indexes?

The three most widely followed indexes in the U.S. are the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite.

  • The Standard and Poor's 500 Index is an index of 500 large cap...

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CAMBRIDGE DICTIONARY

A blue-chip company or investment is one that can be trusted and is not likely to fail”

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Your 3-step process to investing in index funds
  1. Pick the index that you want to track.
  2. Choose a fund that tracks your selected index.
  3. Buy shares of that index fund.

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1. Pick an index

There are hundreds of different indexes you can track using index funds. The most popular index is the S&P 500 Index

Here's a short list of some additional top indexes, broken down b...

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2. Choose the right fund for your index

Once you've chosen an index, you can generally find at least one index fund that tracks it. For popular indexes like the S&P 500, you might have a dozen or more choices all tracking the same in...

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3. Buy index fund shares

To buy shares in your chosen index fund, you can typically open an account directly with the mutual fund company that offers the fund. Alternatively, you can open a brokerage account with...

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Why invest in index funds?
  1. Minimize your time spent researching individual stocks. 
  2. You can invest with less risk
  3. Index funds are available for 

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Why not to invest in index funds?
  1. You'll never beat the market. 
  2. You don't have any loss protection.
  3. You won't always own stocks y...

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