If you well realize that Index funds are not risk free and that you should do your research thoroughly before investing your dollars, then Index funds may be a sensible thing to look at. Its clearly not without risk and just like any other investment, can pose some dangers, if you are not cautious.
That said, you should definitely consider other options and not rely solely on Index funds. Put your eggs in different baskets… remember? To get information on this, read Don’t Just Buy Index Funds. Although not a very detailed article, you should get an idea of the Index funds scenario here.
Tags: index funds, risk free
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