QUOTE(itsybitsy @ Jan 14 2015, 05:18 PM)
Index funds tracks the index, right? It's good when the index keeps going up like in the past few years. But in a downturn, it will go down just like the index too? I'm interested in index fund but not brave enough to buy yet.
Of course it will.. this is not magic investment..
Index funds are not designed to outperform the index, it is designed to match.
So what you get is plain vanilla returns..
No boastful joy that your performance beat the index..
No tearful cry when your fund under perform the index..
You don't need to talk about it, don't need switching, don't need compare, don't need monitoring.. basically no need do nothing.
cause you are getting the AVERAGE performance, however from time to time there will be a few funds beating it.. but many many others will under performs it
This post has been edited by gark: Jan 14 2015, 05:27 PM