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    ommonly preferred by small investors, index funds appeal to a wide array of investors because of their advantages. Most notably, an index such as the S&P 500 has histor
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    A mutual fund index is an investment portfolio that matches a target "index" or benchmark. Common indices include Standard and Poor's (S&P) 500, Russell 2000, Wilshire 5000, etc. This investment vehicle is quite possibly the most popular mutual fund option available to investors from individual to institutional investors.

    The index is a passively managed fund, meaning that the fund is not actively managed by a person making decisions. The simplicity of replicating a market like the Russell 2000 requires little decision making to pick stocks. In other words, the Russell 2000 index fund would mirror the same 2000 stocks in the Russell 2000.

    Although it's commonly preferred by small investors, index funds appeal to a wide array of investors because of their advantages. Most notably, an index such as the S&P 500 has histori

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    5000, etc. This investment vehicle is quite possibly the most popular mutual fund option available to investors from individual to institutional investors.

    The index is a passively managed fund, meaning that the fund is not actively managed by a person making decisions. The simplicity of replicating a market like the Russell 2000 requires little decision making to pick stocks. In other words, the Russell 2000 index fund would mirror the same 2000 stocks in the Russell 2000.

    Although it's commonly preferred by small investors, index funds appeal to a wide array of investors because of their advantages. Most notably, an index such as the S&P 500 has histor

    Portfolio Management
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    ex is a passively managed fund, meaning that the fund is not actively managed by a person making decisions. The simplicity of replicating a market like the Russell 2000 requires little decision making to pick stocks. In other words, the Russell 2000 index fund would mirror the same 2000 stocks in the Russell 2000.

    Although it's commonly preferred by small investors, index funds appeal to a wide array of investors because of their advantages. Most notably, an index such as the S&P 500 has histor

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    requires little decision making to pick stocks. In other words, the Russell 2000 index fund would mirror the same 2000 stocks in the Russell 2000.

    Although it's commonly preferred by small investors, index funds appeal to a wide array of investors because of their advantages. Most notably, an index such as the S&P 500 has histor

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    ommonly preferred by small investors, index funds appeal to a wide array of investors because of their advantages. Most notably, an index such as the S&P 500 has historically out-performed other actively managed portfolios. How's a non-managed fund able to beat wall street professionals? The fund actually has lower expense ratios, which means that the real returns become magnified over the long run. On average, the expense ratio is roughly 1.9% for most non-indexed funds. However, with an index, you'll find the ratio close to 0.1% expenses. This is attributed to the low maintenance involved in managing the portfolio. It takes less time and resources to manage this type of fund.

    Moreover, from 1975 to 2000, only 1 out of 5 professional mutual fund managers did better than their comparative index. A fund manager with a wealt

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