Investment Lesson: So all said and done, but what are "Low Cost Index Funds"?

An index fund is a collective investment scheme. Most Index investments are based around the standard and poor's 500, which are the stocks of the 500 leading companies in the industry. It basically attempts to emulate the performance of any given index stock or other type of investment, most of these funds work by identifying an already existing set well known index. You should invest in index funds because broad market index matches closely to the returns of the overall stock market. The reason why they are so economically beneficial is because they invest in whatever companies that are in the index. No analysts are needed, thus reducing the operations fees substantially. The best way to invest in low index funds is through Mutual Funds or through Exchange-Traded Funds. How ever it is to be noted that even though this is a cost efficient way of investing not all index funds are structured in the same way. It is to be noted that index funds are a long term plan, in the short run they are going to cost you the same as a regular fund. It does give you a broad range of investments however it is not beneficial for true asset and allocation planning.