So, what exactly is an index fund? Put simply, it is a type of mutual fund that tracks a specific stock market index. This means that instead of having a fund manager hand-select individual stocks for the fund, an index fund will automatically invest in all the stocks within a particular index.

But why choose an index fund over an actively managed fund? For starters, index funds tend to have lower fees, making them a more cost-effective option for investors. Additionally, they offer great diversification, reducing the risk of losing money on a particular stock.

The best part? Index funds are easily accessible to everyone. You can invest in them through various online platforms or with the guidance of a financial advisor.

So, whether you’re new to investing or looking to expand your portfolio, consider adding an index fund to the mix. If you found this short [What is an Index Fund?] video helpful, be sure to give it a thumbs up and subscribe to our channel for more finance-related content. Thank you for watching and we’ll see you in the next one!

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