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3/18/2010

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Index Funds (Video)

Advantages and Disadvantages

An index fund is an investment scheme aimed at replicating the movements of specific money markets in which tracking is achieved by holding all of the sucurities within the fund at the same proportions as the index.

Index funds are usually based on computer models with little or no human input. Called passive management, the advantages are lower lower fees with less taxable accounts.

If you play or watch sports, you know that a good coach can be worth their weight in gold. But if you play the stock market with mutual funds, can you say the same for a fund manager? These investment coaches are certainly highly paid. But in this report, money reporter Stacy Johnson asks if they're worth the money.

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Finance Topic of the Month: Why Is It So Hard To Get Out Of Debt?

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