How to Invest in Index Funds: The Passive Investing Playbook for Beginners

There is an investing strategy that has beaten the majority of professional fund managers over virtually every long time period ever studied. It requires almost no effort, costs almost nothing, and is available to anyone. It's called index fund investing — and this video is the complete beginner's guide to doing it right. What we cover: What index funds are and why they consistently beat active management The three factors that make index funds so powerful: cost, diversification, and time How to evaluate and choose the right funds for your portfolio The most important index funds beginners should know Which accounts to hold index funds in and why the order matters How to build a simple three-fund portfolio and keep it running on autopilot Chapters: 0:00 – The investing strategy that beats most professionals 1:30 – What index funds are and how they work 3:45 – Why active management loses: the data 5:30 – The three factors that make index funds work 7:30 – How to choose the right index fund 10:00 – Which accounts to hold index funds in 12:15 – How to build and maintain your portfolio 14:00 – Recap Watch next: Investing in Stocks for Beginners How Investing Works 8 Financial Tips for Young Adults to Build Wealth Before 30 Global Finance Watch covers finance education, market analysis, and the strategies used by the world's top investors and business leaders. Subscribe for new videos every week.