Index Investing For Dummies

Broaden your portfolio and your profits with this plain-English guide

Interested in index funds? Want to invest your money wisely? This plain-English guide explains a recommended, proven way to use index investments to build a well-diversified,low-cost portfolio. Whether you're a conservative or aggressive investor, you'll see how to find the right funds that provide healthy long-term returns — and stay afloat in tough economic times.

• What are index funds, anyway? — learn how index mutual funds and exchange-traded funds work and their advantages over other funds

• Evaluate your index fund choices — from stocks and bonds to commodities and real estate, understand the risks and rewards

• Make the right investing moves — discover your investing style, your connection to the market, and your long-term financial needs

• Develop your portfolio blueprint — decide how many funds you need, where to house them, and whether to mix index funds with other investments

• Manage your money wisely — disaster-proof your portfolio, correct your mistakes, and get help from the pros if you need it (but tread carefully!)

• Ensure happy returns — see how to maintain a smooth-running, age-appropriate, profitable portfolio for years to come

Open the book and find:

• Clear explanations of index funds — and why they work

• How to avoid the temptation to beat the markets

• Evaluations of popular index funds — the best and the worst

• Sample portfolios, from conservative to aggressive

• Lists of index mutual funds and ETFs

• Web resources that help you stay up-to-date

• A Q&A with John Bogle, founder of Vanguard