Index Funds are a great investment opportunity because they give investors the chance to invest in a diverse set of companies at one time. Index funds are low cost, diversified investments. They have historically shown better returns than actively managed mutual funds. Index fund managers do not need to spend time or money on research because they are not trying to beat the market. Investing in index funds is often compared to investing in an entire economy. If certain sectors are performing well, then the index will have a net gain for that year. This means that an investor can benefit from all sectors without having to take on too much risk or spend all their days trying to make decisions.