Index funds

[Limeade]

Experiences?

[Brooklyn]

hmm, never really talked about index funds with our investment rep.

From my understanding its another strategy. It just mirrors the whole market to see what stocks to avoid. Its less expensive then having your stock brokers, but then again your looking to match the target index instead of out performing it. And plus its simple.

[Limeade]

Well with an index fund, you really want it to be as close to the market "S&P etc" as possible, contrary to popular belief, you don't necessarily want it to outperform it either.

Index funds tend to be cheaper because they have less fees due to their lower cost of overhead and manager fees.

IMO and that doesn't mean much, index funds should be looked at by everyone. They tend to have better returns "around 10%" then reg. Mutual funds and less fees.

[Brooklyn]

wrd

[MadFooker]

http://www.sanfran.com/content_areas/home/view_printable.php?story_id=1507

article is too long to quote.

cliffs: before google went public, they brought in experts to educate their employees over economics.
experts recommend index funds.

[axio]

Experiences?
In the long term an index fund always wins. Build your "core" around a few index funds and put the rest into riskier funds.