How do i invest in a broad market index mutual fund ?

Answer 1

If you want to go through a traditional mutual fund, I would recommend Vanguard (www.vanguard.com), as they typically have some of the lowest fees in the industry (reducing fees is the key to getting a better long term return if you are investing in an index fund.

You could also try purchasing ETF's (exchange traded funds), which will mimic the market. There are ETF's for all different segments of the market, but you might have seen a commerical for a more popular one called spiders (SPDR's - this invests in the S&P 500). ETF's will typically have lower fees than any mutual fund. You could open an account from an online discount brokerage. This way you will reduce the commission you are paying, as well. Popular sites are:
-Etrade (www.etrade.com)
-Scottrade (www.scottrade.com - tends to have the lowest fees if you are not doing a lot of trading)
-TD Ameritrade (www.tdameritrade.com)
-Fidelity (www.fidelity.com)
-ShareBuilder (www.ShareBuilder.com - you can actually do trades for $4, but your order will only be executed once a week so that they can accumulate orders to reduce costs)

Many sites also have options to open an IRA, if you are interested in that. That way you can get tax advantages, as well.

Answer 2

Generally ETFs offered by the Mutual Funds like Benchmark (India), Vanguard(US) are best ways to invest in broader index. However, Mutual Fund house also offer Index funds which can be used..
You may find more details in
http://www.benchmarkfunds.com/index.cgi
http://www.nseindia.com/indices/ind_indexfunds.htm
https://flagship.vanguard.com/VGApp/hnw/HomepageOverview

Answer 3

If you are just looking to invest in a broad market index fund, Vanguard is probably your best bet. It's a solid company, the fees are low, and the funds are no load.

Answer 4

there r 2 types of market index mutual fund. one is ETF, which r traded like share in stock exchange. other is bought & sold at Mutual Fund House. ETF can be bought / sold any time during the market trading hours(sometime at discount to it's NAV) whereas index fund at MF can be bought only at day end NAV of respective fund.

Answer 5

schwab.com has a number of in-house funds + acces to Vanguard & others. buying an etf (MF that trades like a stock) probably better. EFA covers a good chunk of the world. DIA covers djia & QQQQ cover Nasdaq.