Don't pick a hot stock
Rather than choosing and buying individual stocks, an index fund allows an investor to own a small piece of every company or asset in the fund. Many index funds track the S&P 500, which is the 500 largest US companies, including Google, Microsoft, ExxonMobil, and General Electric.
An index fund, whether in the form of a mutual fund or exchange-traded fund , is the ultimate"set and forget" investment. With the S&P 500'sHow much could your investments be worth? Find out with this calculator from our partners: Ultimately, the longer an investment sits in the market, the more time it has to compound — an investing term that refers to a sum of money snowballing into more money after earning interest on itself.
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