Index Fund Investing Passive

Index fund investing is a passive strategy where you buy funds that track market indices (S&P 500, MSCI World, etc.) rather than hiring an active manager to try to beat the market. You own a small piece of hundreds or thousands of companies, diversified geographically and by sector. Index funds charge low fees (0.03-0.20% annually) because they're automated: there's no team of analysts picking stocks. You pay $3-20 per year for every $10,000 invested. Active funds charge 1-2% ($100-200 per $10,000 invested).