In a nutshell, an index fund is just a collection of investments! It’s used to follow a.k.a track the performance of a financial market.
The best index funds are a really cheap and effective way to invest your money. Historically you can make more money by investing in an index fund than trying to be a semi-pro trader and beat the market.
Most people invest in index funds to sit back and watch their investment grow.
So, instead of buying shares in a company directly, you give your money to a Fund Manager who puts it together with other people’s money and invests it for you.
Index Funds can pretty much invest in anything, we’re talking countries, oil, gold or even silver.
To invest in a fund you will need to join an online trading platform. I usually recommend Hargreaves Landsdown as their fees are low, you can research pretty much every fund and it is really easy to use