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Introduction to Index Funds

Why index funds are the simplest way to start investing.

StockLrn Team
5 min read
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The Easiest Way to Invest

Index funds offer instant diversification with minimal effort and low costs.

What is an Index Fund?

An index fund is a type of investment that tracks a specific market index, like the S&P 500. Instead of picking individual stocks, you own a piece of the entire index.

Benefits of Index Funds

  • Diversification: Own hundreds of companies instantly
  • Low Costs: Much cheaper than actively managed funds
  • Simplicity: No need to research individual stocks
  • Historical Performance: Most active managers fail to beat indexes

Popular Index Funds

Look for funds tracking the S&P 500, Total Stock Market, or Total International. Many brokers offer their own low-cost options.