2. Choose the right fund for your index - Deepstash
2. Choose the right fund for your index

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 index.

If you have more than one index fund option for your chosen index, you'll want to ask some basic questions:

  1. Which index fund most closely tracks the performance of the index?
  2. Which index fund has the lowest costs?
  3. Are there any limitations or restrictions on an index fund that prevent you from investing in it?
  4. Dowa the fund provider have other index funds that you're also interested in using?

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3. Buy index fund shares

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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 a broker that allows you to buy and sell shares of the index fund you're interested in.

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