Please note: The information below is not investment advice or not intended to be used as investment advice. The information below is being shared for education purposes only.
Following my blog posted on 19 May, 2024, I organised an online meetup to discuss basics of value investing. Below is a short post on index funds.
Investing in an index fund ETF (Exchange-Traded Fund) is a cost-effective strategy for individual investors with smaller amounts to invest. Index fund ETFs track a specific market index, such as the S&P 500 or FTSE 100, offering exposure to a broad range of stocks with a single investment. This diversification is believed to reduce the risk of significant losses, as your money is spread across various companies and sectors.
One of the main benefits of index fund ETFs is their low cost. Management fees, or expense ratios, are typically lower compared to actively managed funds, which means more of your money stays invested and is likely to grow over time.