Fund Investing: Getting Started
If you’re new to investing, or have been waiting to get back into the market after the recent downturn, there’s a perfect way to ease into the investing game — purchase a well-diversified index fund. Index funds track the performance of a large group of stocks, so you’ve got instant diversification with just one fund! Another big draw of these funds is that they are typically inexpensive, so you’re not throwing away a lot of money on management fees. If you’re in the market for an index fund , you might want to consider one of the options listed below. All are well-managed and low-cost winners.
T. Rowe Price Total Equity Market Index
- Ticker: POMIX
- Expense Ratio: 0.40%
- Minimum Investment: $2,500
- Invests In: The entire U.S. stock market
Vanguard Total Bond Market Index
- Ticker: VBMFX
- Annual Expenses: 0.22%
- Minimum Investment: $3,000
- Invests In: A wide range of U.S. government and corporate bonds
Vanguard Total Stock Market Index
- Ticker: VTSMX
- Annual Expenses: 0.18%
- Minimum Investment: $3,000
- Invests In: The entire U.S. stock market
Vanguard Total World Stock Market Index
- Ticker: VTWSX
- Expense Ratio: 0.50%
- Minimum Investment: $3,000
- Invests In: The entire world stock market – the U.S. and most foreign countries
