may be for you
Radio Transcript, 60 seconds, for use during week
of Dec. 3.
This is an Invest Wisely minute brought to you by Iowa State
When investing, many individuals prefer index mutual funds. An
index fund tracks a particular group of stocks, for example the
S&P 500 is made up of large companies.. .the Russell 2000
Index of small companies. An index fund gets the same returns
as the index it tracks minus the annual cost of running the fund.
And with an index fund you don’t need the time, skill,
or money needed to diversify among the stocks of individual companies.
Generally expenses are low because there is no need for analysts
to buy or sell securities. Historically, index mutual
funds have a lower expense ratio than the average managed mutual
Invest Wisely comes from Iowa State University Extension through
a grant from the Investor Protection Trust providing investor
education on the web at investorprotection.org.