BQ Big Decisions: Why New Investors Should Consider Starting With Index Funds
If you’re thinking of investing in equity and are unsure of which stock to buy, index funds may be the way to go.
The BQ Big Decisions podcast gets you the insight you need to make big money decisions with confidence.
For a lot of seasoned equity investors, the highlight is to find a stock that offers multi-fold returns. Such a stock, which is usually the proverbial diamond in the rough, is notoriously hard to find.
But if it is found, it has the ability to transform an otherwise average selection of stocks into something quite different. Think of this collection of stocks as a team competing in a relay race. Now, imagine that three of the four runners in the team are much slower than the competition, but the last runner is a champion. And the champion’s speed allows her team to beat all of the others as a collective.
The problem is, most people never find that ‘elusive stock’ and end up losing money.
You’ve probably been told that equity is the best wealth creator over long term. But, if you’re new to the equity market, choosing a stock, or indeed a mutual fund scheme can be a daunting task.
On this episode of BQ Big Decisions, Arvind Rao, founder of Arvind Rao & Associates, explains why index funds are a great option for those venturing into the equity market for the first time.
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