Low-cost index mutual funds and exchange-traded funds (ETFs) offer a diversified and low-expense way to invest in the market. These passive funds track established indexes, making them ideal for all types of investors, especially beginners. Legendary investor Warren Buffett recommends index funds, like the S&P 500 fund, for most investors.

Index funds track specific collections of assets, such as stocks, bonds, and commodities like gold. These funds aim to match the index’s performance and can be bought as ETFs or mutual funds. When choosing index funds, consider factors like expense ratios and sales loads to minimize costs and maximize returns.

Read more at Yahoo Finance: Low-cost index funds: A beginner’s guide