Index funds offer broad market exposure from "summary" of All About Index Funds by Richard A. Ferri
Index funds are designed to provide investors with a simple, low-cost way to gain exposure to a wide range of securities in a particular market or asset class. By holding a diversified portfolio that mirrors a specific index, such as the S&P 500 or the Total Stock Market Index, these funds offer broad market exposure without the need for investors to pick individual stocks. The beauty of index funds lies in their simplicity and efficiency. Rather than trying to beat the market by selecting winning stocks or timing the market, investors can simply buy and hold an index fund that tracks the performance of a benchmark index. This passive investing approach eliminates the need for constant monitoring and trading, saving investors time and mo...
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