Index funds are low-cost, efficient way in investing in the stock index, usually the Philippine Stock Exchange index (PSEI), or the MSCI Index. It’s been proven that in the long term, the stock index is hard to beat. Most successful stock investors suggest that common investors are better off investing in index funds.
For investors who are looking for an investment which mirrors the performance of the stock index, index funds are the perfect solution. You don’t need to figure out the composition of the PSEi or MSCI Index from day to day and use up large amounts of your money just to be able to buy the stocks which compose the index. All you need to do is buy shares in the mutual fund.