index investing

Index investing is a strategy where you invest in a collection of stocks or bonds that mirror a specific market index, like the S&P 500. Instead of picking individual securities, you buy a single fund that tracks the entire index. This approach offers broad market exposure, diversifying risk across many companies, and typically features lower fees compared to active management. The idea is to match the market’s overall performance over time, making it a popular choice for long-term investors seeking steady growth with minimal effort and cost.