Index Funds

Index funds are mutual funds, but they are passively managed. This means a computer selects the stocks, not a fund manager humans. Aspect automation index funds makes the expense ratios of costs and management costs down.

These funds mainly follow a particular index like the S & P 500, Dow Jones Industrial Average. Thus, the fund allows the index populations collected by them so there is no need for human intervention.

The low cost is a big plus, but then if the performance. The point of index funds is not to beat the market, which is the goal and unhappiness of many mutual funds. The aim is to follow the overall market growth over time. History has proven that the stock market is not growing, but slowly and surely, over time, making it a safe investment, but good.

There is an index fund for everything and everyone. You can get small-cap funds that follow an index linked, as Russell 2000, or a fund that tracks an important index like the S & P 500

You can also obtain the form of exchange traded funds, also known as ETFs. These are great resources to get, because you can not change the market as if they have in stock. You pay only for the Commission, and can be changed during normal trading hours.

Natural Gas ETF is one that I mentioned in the past. This in particular companies trace gases.