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Article: Index Funds Carry Reliable Return, Minimal Risk.(Originated from The Florida Times-Union, Jacksonville)
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- April 30, 1995
- Author:
CopyrightCOPYRIGHT 1995 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Apr. 30--They've been called plain vanilla, hopelessly average and the ultimate insult: no-brainer investments. But you just can't ignore them. Index funds, designed to mirror the results of an index, or basket of stocks or bonds, happen to work.
Many have outperformed stock mutual funds, with the top 20 index funds hovering around the 10 percent mark for annualized three year returns.
And risk? It's minimal. They're guaranteed to check in close - or at - the market index. So you'll never get beaten by the market. Yet, few individual investors take advantage of them. "They're sort-of boring," said Eric Tyson, author of Mutual Funds for Dummies and a financial ...