Index funds that track any of the major indexes are just taking advantage of the concept of diversification. The only remaining risk is whether the entire market goes up or goes down and one can switch to a fund that is designed to profit from a down market when such action is called for.
There are very few active investment managers that outperform index funds or exchange traded funds over a five year or greater period. This is why an index fund is recommended in the case of baby boomer-aged investors who need stellar performance over shorter time frames.
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C.C. Collins is a Financial Planning Advisor and Author of "Scientific Wealth Strategies" at http://wealthscientist . Find more information at mutualfundinfo4u mutualfundinfo4u