What is An Index Fund?


In a nutshell, an index fund is just a collection of investments! It’s used to follow a.k.a track the performance of a financial market.

The best index funds are a really cheap and effective way to invest your money. Historically you can make more money by investing in an index fund than trying to be a semi-pro trader and beat the market.

Most people invest in index funds to sit back and watch their investment grow.

So, instead of buying shares in a company directly, you give your money to a Fund Manager who puts it together with other people’s money and invests it for you.

Index Funds can pretty much invest in anything, we’re talking countries, oil, gold or even silver.

To invest in a fund you will need to join an online trading platform. I usually recommend Hargreaves Landsdown as their fees are low, you can research pretty much every fund and it is really easy to use

What are the Best Share Trading Platforms?

Invest with absolutely no hassle

I'm a big fan of Nutmeg, I started using them when I first started to invest a bit of my salary every month and just wanted to use something simple that delivered results. 

Hargreaves Lansdown
All-in-One Solution

If your looking to start investing and want to research, and actually make your own investments in stocks & shares, then Hargreaves Landsdown is one of the best trading plaforms in my opinion. You can use your stocks & shares ISA allowance with HL which is a huge benefit!

Share This Post

You Might Also Like