This video is an ultimate guide to index fund investing for beginners. After finish watching this video, you should be able to get started index fund investing yourself.
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Additional Investing Resources:
DIVIDEND INVESTING 2021 | 3 MISCONCEPTIONS 😱(don't invest before you watch this) ► https://youtu.be/GMZ-HNBIEww

HOW TO INVEST 100 DOLLARS IN 2021 | and make money FAST ⚡► https://youtu.be/ZW6DBZ9u_3E

DIVIDEND INVESTING EXPLAINED | FOR BEGINNERS (2021 Update) 🤓► https://youtu.be/Ma7pK3PZCiw

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First things first, what are index funds? So an index fund in its simplest form is just a portfolio of stocks and other assets that mimic a financial market index.

An example of a financial market index is the ASX300, and an example of an index fund that mimics the ASX300 is VAS. (VAS is a Vanguard Exchange Traded Fund following the ASX300)

Now people usually interchange index funds with exchange-traded funds, but they are different for 3 main reasons:
- ETFs are listed on the stock exchange (whereas index funds are unlisted)
- Since ETFs are listed on the stock exchange, it meant that every time you buy and sell there are transaction fees
- ETFs have lower minimum investment amounts compare to index funds
- ETFs usually have lower fees compare to index funds
- Index funds don't have transaction fees
- Index funds are priced slightly differently

Like any type of investment, there are definitely risks, and below are a few for your information:
- Index funds work best over the long term, meaning that it's a marathon not a sprint
- You could lose your money
- You might not like some of the companies in the index

If after all that you're ready to get started investing in an index fund, here are a few steps I recommend you take to get started:

1. Read up more about it

Don't jump into it after watching an asian guy on the internet talking about index funds. Do a bit more research because you need to choose products best for yourself.

These are the resources I found super helpful:

Unshakeable - Tony Robbins: https://amzn.to/32JISV7

The Little Book Of Common Sense Investing - Jack Bogel: https://amzn.to/2PEza10

Investopedia and Quora are also incredible resources to dive into, but please take answers on Quora with a grain of salt.

2. What's your investment strategy

Granted you've done the readings necessary to make a decision best for yourself, the next part is asking yourself what is your investment strategy?

By that I mean, how long do you want to invest for and how much risks can you bear taken into account your stage of life.

3. Research fund options

With your investment strategy, research fund options that fit how long you want to invest and the amount of risk you can take.

4. Sign up to an online broker or a fund manager

The fourth part is really straight forward, if you're in the US, you have m1finance, webull and Robinhood. Basically the best things. But if you're in Australia, your banks would have its own trading platform, but if you're a cheapo like me, CMC has the most affordable transaction fees, and stake allows aussies to trade fee-free with US stocks.

If you prefer reading it instead, I wrote an extensive piece index fund investing for beginners on my website here: https://www.thedavidquan.com/blog/index-fund-investing-for-beginners

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Disclaimer: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Any purchases of stock that I show during the video should not be considered financial advice and you should consult a licensed financial advisor before making any investment decisions. I will not be held liable for any losses incurred for investments or trades that mirror my strategy. Please be careful!

Please note: some of these links are affiliate links where I'll earn a small commission if you make a purchase at no additional cost to you.

Timestamps:
1:42 What are index funds?
3:26 How does index funds work?
4:25 Index funds vs etf
7:55 What are the risks of index funds?
12:48 How to buy an index fund?