In the world of investing, there are numerous strategies and approaches that investors can employ to achieve their financial goals. One approach that has gained significant popularity over the years is index investing. Index investing, also known as passive investing, offers a simple and effective way for investors to participate in the stock market while minimizing costs and maximizing diversification. So, what exactly is index investing? At its core, index investing involves constructing a portfolio that closely mimics the performance of a specific market index, such as the S&P 500 or the FTSE 100. Instead of hand-picking individual stocks based on merit or timing, index investors aim to match the returns of the overall market by investing in a broad range of stocks that make up the index. One of the primary advantages of index investing is its low cost. Since index investors do not engage in active stock selection, they avoid the expenses associated with in-depth research, portfolio turnover, and high-frequency trading. Traditional actively managed mutual funds often charge higher fees due to more frequent transaction costs. In contrast, mutual funds and exchange-traded funds