Do you think the world economy will get better? Do you think the economy of the US will grow? I do. The growth of the economy can be seen in the major stock indexes. This is a chance to make money if you buy index funds. Putting money into index mutual funds is easy, fun, and pays off. Every month, it takes 5 minutes! Index funds are good for long-term investors.
No matter which index you choose, it doesn't matter. This index will go up because of the growth rate of the economy sector. There are a lot of indexes out there. But how do you make money from growing indexes?
There are a lot of index mutual funds out there. Fund share prices change based on how the index does. S&P 500 is the foundation of the portfolios of thousands of mutual funds. The operating company and costs vary from one fund to the next. Choose a fund whose operating company is well-known and has the fewest costs.
Even small costs are important. If a fund has a lot of costs, the managers steal the money from the investors. Don't spend a lot of money on stock market research, and don't make it hard to decide which stocks to buy as an index fund manager. The manager of an index fund only buys stocks that are in the index. It doesn't cost much!
The best way to invest in index mutual funds is to put away some money every month. And be a long-term investor by putting money away for at least 10 years. When we put this strategy into a computer model, it shows that if you invest every month for 10 years, you will make money. I can't promise that you'll make money, but the chances are close to 100 percent that you will.
And finally, if you can, try to spread out your investments. Your portfolio should be split into three parts. Buy an index fund for large companies (S&P 500, DJA), an index fund for small companies (S&P 600), and an index fund for developed markets or an international index fund. It helps your investments make more money and be more stable.
