Why You Should Invest in Index Fund to Grow Your Money | Investment Series

A lot of people thought that investing through unit trust or mutual funds will make money.

However, there is a simple strategy that has proven to be able to grow your money over the long term without much effort.

It is called Index Fund Investment.

Index investing is a passive investment technique that attempts to generate returns similar to a broad market index.

Reason #1 - Index Fund Outperformed Most Mutual Fund

Over the long term, statistics has shown that most of the mutual funds will not outperformed even the passive index fund investing.

Look at the data below for US:

It shows that up to 75% of the large-cap funds underperformed the S&P 500.

It seems that passive investment is even better than active investing through mutual funds.

While all these professional fund managers are really good in their investment strategy, over the long term, they are still losing out to the normal passive index investing.

Most people should consider to investing in basic index fund like:

• SPY
• VOO

Reason #2 - Index Fund has been consistently giving a stable return over the long term 

SPX has gone up to about 118% for the past 7 years since 2014.

Watch the video below to understand more about the power of Index Fund Investment.

How Mohnish Pabrai Crushed The Market By 1000%

Happy Investing! 😉

Reference:

https://www.youtube.com/watch?v=sWVVazhSFuE