Index funds are extremely popular investments for a number of reasons, but they can also be confusing, especially if you're new to investing. They can lead to a number of misconceptions that can cause people to either avoid index funds or overinvest in them, believing they can deliver returns that aren't realistic.

Below, we'll talk about three of the most common misconceptions some Gen X investors have about index funds, as reported in a recent survey by investment manager Natixis, along with some realities behind them.

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Source Fool.com