Why Index Mutual Funds?

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

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Bill Lussenheide