Index funds also provide a simple and effective way to diversify your portfolio.
Index funds also provide a simple and effective way to diversify your portfolio. “They offer broad market exposure, reducing the risks associated with individual stock selection,” said Scott McBrien, founder and chief investment officer at The Laser, a stock market technology company based in Scottsdale, Arizona. “Index funds are also cost-effective, with lower expense ratios than actively managed funds, and provide an easy entry point for beginners to gain broad market exposure.”