Investing in the stock market is one of the easiest and most effective ways to build long-term wealth, but choosing the right investments is critical.

There are seemingly endless options, from low-cost index funds to individual stocks. There's not necessarily a right or wrong answer when it comes to where you invest, as it will largely depend on your personal preferences. Here's how to decide whether S&P 500 index funds or individual stocks are a better fit for your portfolio.

An S&P 500 index fund is a type of investment that aims to track the S&P 500 index itself. In other words, it includes the same stocks as the index and mirrors its performance over time. Some of the most popular S&P 500 index funds include the Vanguard S&P 500 ETF (NYSEMKT: VOO), iShares Core S&P 500 ETF (NYSEMKT: IVV), and SPDR S&P 500 ETF Trust (NYSEMKT: SPY).

Continue reading

Source Fool.com