2 Pitfalls of Only Investing in Index Funds

Some people consider themselves hands-on investors. They like to spend time researching stocks, comparing companies within the same industry, and reviewing financial data to determine which businesses should have a place in their portfolios.

Then there are those investors who prefer to take the easy way out by putting their money into index funds. Those investors don't have to do a lot of legwork at all.

To be clear, there's absolutely nothing wrong with being one of those investors if that's an approach you're more comfortable with. In fact, investing giant and billionaire Warren Buffett has long said that index funds are a terrific choice for the everyday investor.

Continue reading

Source Fool.com