Research Paper On Index Vs Mut

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FUNDS
Indexing, in its simplest form, means buying all of the stocks, bonds or other instrument of a market, or asset class, instead of trying to pick winners and losers. Index investors are content with the average performance of a market. When they invest, they buy all an amount of all the stocks within the index with the knowledge that some individual stocks will gain and some will lose. The hope and assumption is when investing in index funds, that the overall net change of all the stocks in the index average out to a gain. This is usually the case as the normal trend for a market is to gradually climb. Index investors are skeptical that on average a money manager can improve on the average performance without raising risk. They are even more skeptical after fees are subtracted.
The best known index, the Standard & Poor's 500 (S&P 500), is a collection of the top 500 major US stocks. However there are dozens of others, including the Euro Top 100, the largest European ...

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among shareholders is significantly less with index funds as opposed to mutual funds. This saves time and money.
Low Expenses – Stock managers charge money. The better they are, the more they charge which boils down to the more you make, the more is taken out of you profit. The average general stock fund takes 1.5% of your assets each year for expenses. Some funds charge much more. The average index fund charges only 0.46%, which means more of your money, is left behind.
Lower risk – As you invest in an index, your stocks are generalized throughout the market. This diversification holds a lower risk then picking out individual stocks yourself.

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