
When investors buy an index fund, they get a well-rounded selection of many stocks in one package without having invex purchase each individually. The result: Higher investment returns for individual investors. You can purchase an index fund directly from a mutual fund company or a brokerage. Same goes for exchange-traded funds ETFswhich are like mini mutual funds that trade like stocks throughout the day more on these. See our picks for best brokers for mutual funds. Index mutual funds track various indexes. Despite the array of choices, you may need to invest in only one.

