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August 17, 2007, Newsletter Issue #79: Investing in Index Funds

1

Tip of the Week

When in doubt, invest in index funds. Index funds are mutual funds that hold a little bit of all the stocks in a particular index. S&P 500 Index Funds are offered by all good brokers and require little effort on your part. Whenever the S&P 500 goes up, you know that your mutual fund has gone up as well. Because most mutual funds don't beat the market over time, investing in an index is the easiest way to invest in the stock market even if you're still learning the mutual fund basics.



2

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