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Index Funds . By: Brad Chastain. Hey, what uhhh … exactly is an Index Fund?.
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Index Funds By: Brad Chastain
Hey, what uhhh… exactly is an Index Fund? • Index funds attempt to match the performance of a broad market index. These funds offer essentially the same potential rewards – and the same risks – as the market in general. They provide an easy, cost-effective way to own stocks.
Example • Equity Index 500 Fund (PREIX) Objective: The fund seeks to match the performance of the Standard & Poor's 500 Stock Index®. The S&P 500 is made up of primarily large-capitalization companies that represent a broad spectrum of the U.S. economy and a substantial part of the U.S. stock market's total capitalization. NAV: $29.85 This is a high risk/ high reward Fund Morning Star rating ***