In This Video, Poku Banks talks about the easiest way to get wealthy which is through index fund investing! Use Code BANKS at https://www.dreamerapparels.com/ for 10% OFF! This book contains everything that you need to know to get started with investing in the stock market. It is the easiest way to be successful in the stock market. https://gumroad.com/a/437843059 This can be automated, No huge amounts of brainpower, low risk, Can be done in your sleep, you don’t need to be creative or create the next Facebook. Why should I listen to you? You’re not a millionaire? You’re not actually listening to me, I’ll admit all of the information I’m about to tell you is regurgitated from wise investors like Warren Buffet. Books I’ve read like The Millionaire Next Door & Rich Dad Poor Dad. And backed up by verified statistics based on figures ranging from 50 years ago. Investing is pretty simple, there is no need to reinvent the wheel. Study and listen to people at the top and you’ll be fine. What is The Stock Market? A Marketplace which allows buyers and sellers to trade securities which are stocks, etfs, bonds and mutual funds. There is 1000s on companies on the stock market which listed on different exchanges like the NYSE, NASDAQ and LSE. When you buy a share of a company, you’re buying a piece of that business. What is an Index Fund? It’s a fund that tracks a benchmark index for example the S&P500. The S&P500 is an index that tracks the largest 500 publicly trades companies in the US which is ~80% of the total market value in the US. When you buy a fund that tracks the s&p500, you’re investing in some of the largest and most successful companies in the world like Apple, Disney, Coca Cola and 497 more. As there is 500 individual companies in different sectors and industries this bring diversification benefits and gives you a broad exposure to the market. If you know nothing about the stock market you can simply put your money into the whole US market. Now what you need to remember is that the wealthiest investor alive recommends this as he said ‘for most people, the best thing to do is to own the s&p 500 index fund’. The average annualised return for the sp500 over the last 90 years is 9.8%. So essentially if you can make a bigger return on your money which is bigger than what the sp500 did in a year, you have essentially beaten the market which is what all hedge funds and investors try to do by handpicking stocks You can study all of the fundamentals and read as many financial reports and still underperform the market. SP Dow Jones Indices released a study in early 2019 showing that hedge funds find it increasingly difficult to compete with the sp500 where after 9 years 64.49% of hedge funds underperformed the market, after 10 yrs its 85.1%, 15 years 91.6%. This is why I believe that a proportion of your total investment portfolio should include the index fund as you can’t go wrong. Yes it’s not as exciting of returns as you would like but this is what investing is about. It’s not meant to be fun, picking stocks and gambling is fun. Examples Of Index Funds / Which Ones 3 things to look for when choosing a fund: Expense Ratio which is essentially a fund management fee. As this is being passively managed with little buying and selling it should be extremely low compared to an actively managed mutual fund. There needs to be liquidity too which will affect how quick we can convert our investments into cash. How well it tracks the index; there is plenty of funds from different platforms like vanguard and fidelity and different countries that track the fund so you need to make sure they track it accurately. Now most of my audience are UK, EU Based so the one we should all look into is $VUSA which has an expense ratio of 0.07%. This means for every £10,000 invested it would cost you £7. Can be found on Trading 212 on ISA account. Best Investing Strategies: Dollar-Cost-Averaging: Buying continuously every week,month, or whatever interval. Buy whether the market is up or down. Hold for as Long as Possible: I plan on holding my investments for the next 30+ years regardless, Before investing make sure you have an emergency fund of 3-6 months worth of expenses and if not start with £1000. Tags: investing in index funds vs stocks,how to invest in index funds for beginners,poku banks,poku banks baby,how to invest £100 in uk,How To Become Wealthy,The Easiest Way To Become A Millionaire,Index Fund Investing strategy,index fund vusa,trading 212 vusa,best index funds for 2020,stock market investing for beginners 2020,investing for beginners,warren buffett investment strategy,index funds explained for dummies,index funds vs stocks,investing made easy