FreeMoneyFinance has a nice piece on why he invests mainly in index funds.
Index funds are a type of collective investment that attempts to mirror the performance of a particular financial market. For instance, the S&P 500 or the Vanguard MidCap Index. Index funds are often automated and can achieve significant investor savings by virtue of their lack of over human involvement.
FMF finds index funds:
• deliver higher returns
• (partially attributable to their low cost)
• require less time to manage
• and are easy to manage
This is why The Motley Fool calls index funds, “a wonderful option for the know-nothing investor.”
That about describes our aptitude. Maybe these bear looking into. — BEN POPKEN
Why I Like Index Funds [FreeMoneyFinance]