How Do You Buy An Index Mutual Fund Or ETF (Exchange-Traded-Fund)?
Investing in an Index Mutual Fund can be one of the easiest and most profitable investment decisions you ever make in your lifetime. An index is a representation of a section of the stock market. Examples of indexes include the Dow Jones, the S&P 500, the NASDAQ 100, and the Wilshire 5000. Interestingly enough, most actively managed mutual funds do not beat the indexes. An actively managed mutual fund is a fund where you have a management team who buys and sells stocks within the mutual fund. As a result of this service, you end up paying larger fees for the management and operating expenses of an actively managed mutual fund. The higher management and operating fees make it very hard for an actively managed mutual fund to beat an Index Mutual Fund. To buy an Index Mutual Fund, or exchange-traded-fund (ETF), follow the following steps. • Purchase through a brokerage account – exchange-traded funds (ETFs) are bought and sold like stocks. Since indexes are bought and sold like stocks, yo
