are index funds good for beginners 
index funds can be an excellent option for beginners stepping into the investment world they are a simple cost effective way to hold a broad range of stocks or bonds that mimic a specific benchmark index meaning they are diversified index funds have lower expense ratios than most actively managed funds making them affordable and often outperform them too these reasons make them a solid choice not only for beginners but many expert investors as well 3 a final bonus for newer investors if your fund is tied to a main index like the s p 500 or nasdaq composite you ll see news coverage of it often helping you keep abreast of your investment while learning the broader market s ebbs and flows 