I suppose people have picked up that idea, because there's been so much talk over recent years about the advantages of index funds. Because it holds securities in the same relative weightings as the index and trades infrequently, expenses are low. In a good index fund, returns parallel the market. They work well for beginners, because there is no portfolio manager to monitor. But they have disadvantages, too.
Most index funds invest in stocks, and there are no guarantees.
When the stock market goes down, the fund goes down. Heads Up from NEA Member Benefits NEA members now have a significant new resource. In addition, Nolo offers a wide variety of paperback books on consumer and financial concerns. These prices are valid when you purchase online. You can also buy Nolo's books from bookstores at retail prices.