Index funds are a passive strategy for long-term growth. They replicate performance of benchmarks.
**How index funds work**
When you buy savencia shares an index fund, you own a piece of all the companies in the index. Examples: S&P 500 index fund, MSCI World index fund, Nasdaq 100 fund.
**Benefits of index funds**
– Low costs.
– Reduced individual risk.
– Aligned with market growth.
**Popular index funds**
– Vanguard 500 Index Fund (VOO).
– Diversification beyond U.S..
– Covers entire U.S. market.
**Risks of index funds**
– Market risk still applies.
– Lack of flexibility.
– S&P 500 is tech-heavy.
**Conclusion**
Index funds are a safe entry point. By holding S&P 500, global, and emerging market funds, investors grow wealth steadily.
