Personal Finance Buzz

You don’t have to settle for expensive equity mutual funds recommended by your financial advisor. Ask questions, and look into cheaper index funds.

One of the most popular ways to invest is to make use of funds. Funds offer investors the ability to diversify quickly and easily. For the most part, investors have two choices: Mutual funds (including index funds) and ETFs.

Index funds based on these indexes are a great way to invest in the stock market without buying individual stocks or actively managed mutual funds.

Funds essentially represent the ability to invest in shares from multiple investments at once. This can add instant diversity to a portfolio, as well as spread the risk around so that if one investment tanks, there are other investments limiting loss.

An overview of the main differences between index funds and actively managed mutual funds.