Premium Essay

Index Fund

In: Business and Management

Submitted By payacabb
Words 1732
Pages 7
Topic 2 : Should retail investors invest in index-tracker funds rather than actively-managed funds?

Topic 2 : Should retail investors invest in index-tracker funds rather than actively-managed funds

In recent years, investment has been interested by the majority of people more than in the past as basically everyone would like generate income and try to find the ways that can actually make money. Not only do investors need to know more knowledge that how to make money investing, but also they have to update news which has information about money’s movement. Moreover, the majority of investors is supposed to follow international news and monitor that show their money in real time. In today’s world, there are many capital markets for investing because if the number of investors increases, it will make the number of investment products in the capital market increased. Thus, investors in these days are supposed to have the way in order to choose which stock will make them make the most investment return. Then, there are two investing’s types in funds for retail investors in order to invest between index- tracker funds and actively- managed funds and most investors are supposed to understand and know which one they have to use. This essay will be discussed investing in index-tracker funds and actively-managed funds that follow by pros and cons, and also provide knowledge that why are retail investors supposed to put their money in index-tracker funds rather than in actively-managed funds.

First and foremost, before the majority of investors would like to choose any stock in the market, they are supposed to understand and know how different between two styles: index-tracker funds (passive funds) and actively-managed funds. To begin with, index-tracker fund which is fund’s manage, is also called passively-managed funds. This style of investing do not manage too…...

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