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An Indicator of Stability
Index funds have become an increasingly popular investment. But are they right for you? Index funds, which are a type of mutual fund, are a pretty simple concept in the world of investments. In an index fund, stocks are grouped together from companies included within an index, for instance the S&P 500 or the Dow Jones Industrial Average. The percentage of stock is kept the same as the indexes themselves in an attempt to mirror the index. While it’s a rather basic concept, it’s one that for some has proven to be successful over time.
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