Should You Invest in Index Funds?

Photo by Maxim Hopman on Unsplash

One of the best pieces of financial advice I can give you is to start investing. I understand if it’s all very intimidating for a first time investor, so where do you start?

Index funds are widely considered safer bets than your typical investing opportunity and that makes them great for beginners. But there are some things to consider before jumping in. So let’s go over some tips, tricks, and financial myths of index funds.

Be Careful When Picking An Index

You can track the top index funds through S&P 500 Index, Dow Jones Industrial Average, Nasdaq Composite, Russell 2000, S&P SmallCap 600, MSCI EAFE, MSCI Emerging Markets, and Bloomberg Barclays Global Aggregate Bond.

You’ll find an incredible amount of index funds to choose from, if you decide to pursue them. Remember that this is still investing, so don’t just choose them willy-nilly. Look at how each of these funds are doing and invest accordingly.

Index Funds Are Low Risk

The basic understanding (and slight misconception) is that index funds are always safe. This is not the case, although they do provide less volatility than other kinds of stocks. You can still lose money though, of course.

This still provides a good move into investing if you’re looking for something very low…