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First time investors,where should they put their money


According to financial planners where first-time investors should put their money.




                  Legendary investor Warren Buffett is a big fan of the index fund, once calling it "the most wise and sensible equity investment."

                     Index funds are a type of passive investment that composed of some of great performing stocks ,that exposes investors  with broad selection of stocks in order to diversify and greatly minimize risk. Index-funds are low-cost and regularly outperform actively managed funds.

           Index funds are a good option for people either dont have either time to actively manage portfolio or don't have that much of detailed knowledge ,they just want to "set and forget".

            Idea of getting started investing can be scary.All investments bear some level of risk, but according to financial planners, but there is very little chance you would go wrong with index funds..
Even Warren Buffett has high praises for index-fund investment, calling the index fund "the most sensible equity investment" .

          The legendary investor advised shareholders of his company, Berkshire Hathaway, in 2014 to invest 90% of their cash in a "very low cost" index fund.

           Index funds are investments in a broad selection of stocks. Rather than choosing and buying individual stocks, an investor owns a small piece of every company or asset in the fund. An S&P 500 index fund, for example, tracks the 500 largest US companies, including Google, Microsoft, ExxonMobil, and General Electric.

           You can also buy different types of funds,matching with your financial goals.For example, if it's a retirement goal, you can buy a target date fund which invests more aggressively at the beginning and it gets more conservative as you approach near  to your  retirement age. It automatically rebalances so you don't need to be an expert at buying and selling.

Index funds are particularly attractive for their low fees. These funds are not actively managed - you're not necessarily need some expert financial advisor  to buy and sell your shares  and manage your portfolio. Instead, each fund is designed to match the market, so total operating costs - otherwise known as an expense ratio - should be low. The typical expense ratio for a passive index fund is about 0.2%, according to Investopedia.

 read book on -secrets about money,that you don't learn in school

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