So here’s a scary tale just in time for Halloween . . .
When I’m asked to look at investment portfolios that have been assembled on a DIY basis or on the recommendation of a financial advisor, I regularly find index funds dressed up as actively managed funds.
As you may recall from my past articles, index funds are low cost, broadly diversified mutual funds that invest in an index representing a broad swath of the investment market.
For instance, you may be familiar with or have heard of an S&P 500 index fund. This is a fund that invests in all the stocks in the S&P 500 index.