An index fund is essentially a mutual fund that invests in the stocks that are the basis of a well-known stock or bond index. To put it in simpler terms, it is a list of investments. It is wise to choose an index fund because after funds are made to pay their annual management fee of about 1%. Most of the funds managers cannot beat their fund’s benchmark, however; when it comes to Index funds, they usually carry a very low fee which is usually 0.02% per year. Which is a lot less than the other fees for the competitors. As well as, they are reliable when it comes to delivering the market’s average performance. In other words, by aiming for the average; you actually have a better chance at beating the competing investors. It is most likely that when you invest in the index funds, you will not fall below average and keep a somewhat steady market income.
https://www.investopedia.com/terms/i/indexfund.asp
