Yes... Told differently, index fund is great because basically their cost difference with a managed fund are similar to the difference in return. Take a managed

Yes... Told differently, index fund is great because basically their cost difference with a managed fund are similar to the difference in return. Take a managed fund costing 0,5% a y more than the index fund, the managed one will have to do .5% better, which is not always the case. Take on top of that the very high fee for buying managed funds (up to 5%), and index funds suddenly gets interesting, especially if you want to invest for a few years only. Compared to single stocks, index funds can be more expensive but they offer some more reliability as the diversification is higher (at least for small investors)