How Do Index Funds Work?
Index funds work in a very simple way for example when you invest money in any index fund, then that cash is collected and used for investment in various other companies which eventually make a particular index. Thus providing you with different portfolios if you want to buy individual stocks of any company.
What are Index Funds?
Diversification is important to be a good investor, so people buy mutual funds and start investing, but it also has some risks. Now, to decrease the equity market risk. Investors start looking for Index Funds. Here we will talk about Index Funds along with their benefits and a lot more.