The Complete Guide to Investing in Index Funds -- How to Earn High Rates of Return Safely [Paperback]

Craig Baird (Author)

Book Description

Publication Date: September 21, 2009

Long kept a secret by financial insiders, index funds are rapidly growing in popularity. Index funds are unit trusts that track the performance of an index. An investor can buy shares comprising the index or buy a sample of shares that make up the index. A fund s value is linked to the index, meaning that if the index rises, the value of the fund also rises. Index funds outperform 80 percent of managed funds, and more and more investors are turning to these funds to reduce the anxiety and expense of trying to beat the market and predict what stocks, bonds, or mutual funds will perform well. In this book you will find out why insiders have kept these funds a secret and how you can benefit from them. In this new, comprehensive book, you will learn the different indexing methods, including traditional indexing, synthetic indexing, and enhanced indexing, and you will learn the advantages of index funds, among them low costs, simplicity, and lower turnovers. You will read about diversification, asset allocation, capital gains tax considerations, enhanced index funds, and the common mistakes investors make with index funds. Furthermore, you will learn how to achieve balance, how individual funds perform, how to use exchange traded funds for effective asset allocation, how to choose the right fund, how to develop a portfolio, how to gauge portfolio risk, and how to determine your risk capacity. We will provide you with a list of funds, specific strategies, and step-by-step guidance on active indexing. We will explain the efficiency of indexing, the flexibility of active portfolio management strategies, and the benefits of index funds compared to traditional mutual funds. Whether you are a first time investor or a stock market pro, you will discover valuable information about how index funds work, what factors to consider before investing, and how to avoid common pitfalls. By reading The Complete Guide to Investing in Index Funds you will ultimately learn how to maximize your return while minimizing your risk.

Product Details

• Paperback: 288 pages
• Publisher: Atlantic Publishing Company (FL) (September 21, 2009)
• Language: English
• ISBN-10: 1601382057
• ISBN-13: 978-1601382054
• Product Dimensions: 8.8 x 5.9 x 0.8 inches
• Shipping Weight: 8.8 ounces (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars  See all reviews (6 customer reviews)
• Amazon Best Sellers Rank: #1,465,664 in Books (See Top 100 in Books)

More About the Author

Discover books, learn about writers, read author blogs, and more.

Customer Reviews

Most Helpful Customer Reviews

1 of 1 people found the following review helpful:

4.0 out of 5 stars Good for beginners., February 23, 2010

By 

Just Me "pets are cool" (Columbia, SC) - See all my reviews

This review is from: The Complete Guide to Investing in Index Funds -- How to Earn High Rates of Return Safely (Paperback)

This book presents index funds in a pretty basic manner. I was not familiar at all with index funds, and when I started reading the book it was pretty heavy to absorb. As I continued to read, I found that it made a lot of sense. Now I feel I have a good overview of what index funds are and how they work. More importantly, I have an understanding of how these funds can work for me and help me in saving for retirement.
During recent months I have taken a strong interest (due to our current amazing economy) in my financial situation, and was looking for a way to not fret so much about my investments and hard earned money. Most of the books I have picked up are too complicated and contain what appears to be occupational jargon that made no sense to me. After so many disappointing reads, I was hesitant to even look into index funds, which I knew pretty much nothing about. I stumbled upon this book, and took the chance that it might offer something to me. Turns out it has been the most informative financial book I have read in years. I recommend this book for anyone looking to take hold of their own financial future with understanding. It's a great start, not just for index funds, but to get a better general view of all forms of investments.

2 of 3 people found the following review helpful:

5.0 out of 5 stars Index Funds for Everyone, November 13, 2009

By 

Lynette R. Fleming "Coauthor of Lunch Buddies... (Decatur, IL USA) - See all my reviews
(REAL NAME)   

This review is from: The Complete Guide to Investing in Index Funds -- How to Earn High Rates of Return Safely (Paperback)

Let's say you inherited or won $100,000.00 in the lottery. You might be inclined to invest the money in the stock market, in the hope that you could turn your $100,000 into $1,000,000 or maybe even more. Some people, money in pocket, would go straight to their local stockbroker, in this book known as a stock picker. Some, with a gambling mentality, would choose to invest the money themselves, spending endless hours in front of the computer looking for the best stock to sink their money into. But whoa ... before you begin investing in stocks you feel good about, and before choosing a stock picker who may not know much more than you, you might want to check out index funds.

Through my 403b, I've been invested in the market for years ... but I have to admit I didn't know the difference between an index fund and a mutual fund. So this book is a Godsend for somebody like me who is somewhat ignorant about the stock market and too busy (or not interested enough) to spend the necessary time to become my own stock manager. Every night at 10:00 pm sharp my husband heads to the den to watch Jim Cramer's Mad Money. Cramer's Stay Mad for Life and Mad Money are the only two books he has ever cared enough about to order. Sometimes he asks me to come in and watch with him, but I have to tell you that while I find Cramer's antics very entertaining, I just don't get excited about it the way my husband does. Money and making money is his passion.

In Jim Cramer's Stay Mad for Life, he tells us that "My standing rule is that in order to do well, you absolutely must spend at least one hour a week doing homework on each stock you own, in addition to doing a lot of research before you buy." Now, depending on how many stocks you own, that could add up to a pile of time, time I'd rather spend doing other things. Which brings us back to The Complete Guide to Investing in Index Funds, a book for people like me. Mr. Baird explains how index-fund investing makes things easier for investors, opening up the doors for millions of people to find the financial solutions they are looking for, and helping them realize that the goal should not be to beat the market but to replicate it.

With simple explanations of index funds, benchmarking, mutual funds, international investing, commodities, and risk tolerance, Mr. Baird gives us all the tools we need to put together a portfolio which will stand the test of time and help us meet all our financial goals. With the knowledge you will gain by reading this book, you'll be able to invest your money well, with low risk and high rewards. So go ahead, read this book ... and you'll be ready no matter what surprises come your way.

5.0 out of 5 stars Index Funds - The Way to Go For a Beginning Investor, February 25, 2010

By 

Susan L. Christian "rodeo mom" - See all my reviews
(REAL NAME)   

This review is from: The Complete Guide to Investing in Index Funds -- How to Earn High Rates of Return Safely (Paperback)

"Index Funds" are the way to go if you are going to invest in the stock market according to Baird. If you are a novice when it comes to investing or someone who needs to brush up on investing options, this book is the one to help you decide in which direction is your best option.

The book is an easy read with many explanations. The table of contents is very detailed, allowing the reader to find specific sections for easy referral at a later time if needed. Baird starts out in the preface by letting the reader know where he got all of his experience.

The author also gives an interesting, yet understandable history of the stock market. He refers to several people who have had an influence on the industry on how things are done today. He includes a detailed Appendix with the acronyms of the industry, resources of where to find extra help, internet resources, and a detailed list of all the companies that are our there to help people put their investment portfolios together.

The author is constantly reminding the reader that the stock market is not for the faint at heart. He stresses that investing is something that needs to be planned and needs to be very well managed, either by the individual or by someone that the individual might hire to help them on the road to investing.

I found the information to be very valuable and understandable - very user friendly.