Index Fund

-An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a market index.

-The average annual interest rate for an index fund is .4-.9%.

-Because of the broad range of investments, index funds have a moderate risk, but nothing too high.

-Some benefits to investing in index funds are low costs, lower management, lower risk through broader diversification, and tax efficiency.

-Although index funds are a relatively safe way to invest, they are not FDIC insured and your profits could still drop.

-To buy an index fund, you would have to go through an investment company or manager.

-I chose to invest so much because even though it doesn't have a super high potential return rate, it's a safer way to invest money, especially for retirement.

$25,000

I chose to invest into an index fund because it provides a broader range of diversification than a mutual fund and because it doesn't pose too much risk.