In this blog, we have talked about a variety of different types of investments, like stocks for example, which allow an everyday individual to control part of a major company in return for financial gain and reduction via the companies stock performance. But what if I told you there was a way to own a small piece of every major company in the world, like apple or google, without having to pay for each individual stock. That’s right, this it totally possible and is one of the most common types of investments called an “index fund” which allow you to own a bunch of tiny pieces of a vast amount of major companies. In this article, we will talk about everything you need to know about an index fund, and the pros of buying into them.

There are a number of benefits, as you know, to investing, but for teens, buying into an index fund is one of the best options out there for several reasons. This is due to their low-risk (since you are buying across a vast array of companies in a bunch of different industries), their relatively low price, and the fact that to invest in an index fund, you don’t exactly need to be an expert.
On top of this, index funds also are able to deliver massive returns, especially if you steadily invest into them with a monthly amount of money. According to a variety of sources, the average return on an index fund is just shy of 10% annually, so assuming you invest even a small portion of money monthly, you will gain a significant amount of compound interest and will drive your returns through the roof.

To start investing as a teen, consult with your parents on how to help build your financial future and set yourself up for the better.