The problem with investing in stocks
You need to know which companies are good. Research. Luck.
What if you don't want to do that?
Enter the index fund
A basket with a hundred (or thousand) different stocks.
Example: Spain 35 fund. Has Inditex, Santander, Telefonica, etc.
Buy 1 share: automatically own 35 companies.
Why is it better?
Diversification: If 1 falls, others compensate. Less work: Fund is already made. Less risk: One bankruptcy doesn't ruin you. Low fees: 0.1-0.5% yearly.
Historical returns
S&P 500 fund: 10% yearly over 100 years.
1,000€ in 2024 = 2,600€ in 2034. While sleeping.