3 Signs You Shouldn't Be Handpicking Stocks
When it comes to setting up an investment portfolio, you have choices. You can assemble a mix -- ideally, a diverse one -- of individual stocks, or you can fall back on index funds, instead.
Index funds allow you to effectively own a bucket of stocks with a single investment. And while you can choose one fund over the other, you get no say in the specific stocks those funds encompass.
Investing in index funds is a great way to simplify the process, but one thing these funds won't help you do is outperform the broad market. That's because index funds are designed to match the performance of the indexes they're associated with.
Source Fool.com
