Index Fund

An index fund is a type of investment that aims to match the performance of a specific market index, like the S&P 500. Instead of picking individual stocks, it invests in all the companies included in that index, spreading out risk and reducing costs. This passive approach provides broad market exposure, making it a popular choice for investors seeking steady growth over time. Index funds are known for being transparent, cost-effective, and easy to manage, helping investors track overall market trends without actively managing each investment.