Re: Why Index Mutual Funds?

Hi Bill,

While it is true that many money managers can not out perform the indices,
investing  in them is not always a better solution.
Since the formation of the Dow index, ONLY ONE company has stayed in it: GE.
the rest have been dropped.

Attaching a stock to an index has the same crowd psychology that the rest of
investment world is suffering from.

Further, assuming the risk to reward ratio on stock, the taxes and the crazy
roller coaster rides, I am not sure whether one is not better investing in
Bonds long term and sleeping well at night.

Matt

"Bill Lussenheide" <[EMAIL PROTECTED]> wrote in message
news:[EMAIL PROTECTED]
> Why should you own shares of an "Index Mutual Fund"? Index Mutual Funds
own
> some of the best-known companies in America and outperform most mutual
> funds.
>
> What Are Indexes?
> The Dow, the S&P 500, the Nasdaq 100, the Wilshire 5000, these are all
> indexes. Each is a group of stocks chosen to represent portions of the
stock
> market. There are index mutual investments based on the Standard &Poor's
500
> (the stocks of the 500 leading companies in America) and the Nasdaq 100
> (the largest capitalization 100 stocks of the Nasdaq ). Heard of General
> Electric, Tupperware, and Exxon, Wal-Mart or Ford? If you invest in the
S&P
> 500, you are a part owner of these companies. The Nasdaq 100 has
technology
> companies such as Microsoft, Dell, and Yahoo, but also contains many
> low-tech growth companies such as Starbucks, Costco, and Bed Bath &
Beyond.
>
>  Why Should We Only Invest In Index Mutual Funds?
> A broad-market index matches as closely as possible the return of the
> overall stock market. What's so great about just being average? Most
> actively managed mutual funds find it hard just to make that average!  In
> fact, less than 20% of actively managed diversified mutual funds have
> outperformed the S&P 500 over the last 10 years. This poor record,
combined
> with the tremendous diversification that Index Mutual Funds provide,
versus
> most actively mutual funds, make them the perfect choice for your
portfolio.
>
> Learn more about index mutual funds in my free article at:
>
> http://www.InvestmentWarrior.com
>
> (CLICK ON THE NEWSLETTER ICON & THEN "MONTHLY ARTICLE")
>
> Bill Lussenheide
>
>
>
>