*Web Novel chapter below*
How to Invest in Index Funds: A Beginner’s Guide to Effortless Wealth-Building
Investing can feel like a maze of confusing options and risky bets—especially if you’re just starting out. But there’s one strategy that cuts through the noise with its simplicity, low cost, and proven results: index fund investing. If you’re searching for a beginner-friendly way to grow your wealth over time, index funds are your golden ticket. In this guide, we’ll explain what index funds are, why they’re perfect for beginners, and how to get started today—complete with trusted platforms where you can sign up. By the end, you’ll have a clear, actionable path to launch your investment journey.
What Are Index Funds?
Imagine owning a small piece of the entire stock market without having to pick individual stocks. That’s the magic of an index fund. It’s a type of mutual fund or exchange-traded fund (ETF) that mirrors a specific market index, like the S&P 500 or the Dow Jones Industrial Average. Instead of betting on one company, you’re investing in hundreds—like Apple, Microsoft, and Amazon—all at once. It’s less about chasing winners and more about riding the market’s natural growth.
Why Index Funds Are Perfect for Beginners
Index funds are the go-to choice for new investors, and here’s why:
- Instant Diversification: One fund spreads your money across hundreds of companies, so a single stock’s stumble won’t derail your progress.
- Low Fees: No need for expensive stock-picking experts—index funds keep costs down.
- Set It and Forget It: No market expertise needed. Just invest and let time do the heavy lifting.
- Proven Track Record: Studies show index funds often outperform actively managed funds, making them a reliable path to long-term wealth.
How to Start Investing in Index Funds: A 3-Step Guide
Ready to take control of your financial future? Follow these simple steps to begin your index fund journey.
Step 1: Choose a Brokerage Account
A brokerage account is your gateway to buying index funds. Think of it as your investment dashboard. Here are three top platforms perfect for beginners:
- Vanguard: The pioneer of low-cost index funds. Sign up here.
- Fidelity: Offers zero-fee index funds with no minimums. Get started.
- Charles Schwab: Known for stellar customer support. Open an account.
Pro Tip: Look for platforms with low fees, a variety of funds, and an easy-to-use interface. Most let you start with as little as $1!
Step 2: Pick the Right Index Fund
Once your account is set up, choose a fund that matches your goals:
- S&P 500 Index Funds: Tracks the 500 largest U.S. companies (e.g., Vanguard’s VOO). Perfect for broad market exposure.
- Total Stock Market Index Funds: Includes small, mid, and large-cap stocks (e.g., Schwab’s SWTSX). Maximum diversification.
- International Index Funds: Invests globally (e.g., Fidelity’s FZILX). Adds worldwide balance.
Newbie Hack: Start with an S&P 500 or total market fund for simplicity and growth potential.
Step 3: Make Your First Investment
Now, it’s time to put your money to work:
- Fund Your Account: Transfer as little as $1–$100 to get started.
- Buy Your Fund: Search for your chosen fund (e.g., VOO at Vanguard) and hit “buy.”
- Automate It: Set up automatic investments—like $50 a month—to grow your wealth effortlessly.
Quick Links:
Why Index Funds Are a Smart Choice
- Lower Risk: Diversification cushions you from single-stock disasters.
- Tax-Friendly: Fewer trades mean fewer taxable events.
- Long-Term Gains: With the market’s historical 7–10% annual return, index funds are a retirement-building powerhouse.
Risks to Keep in Mind
No investment is bulletproof. Here’s what to watch:
- Market Swings: When the market dips, so does your fund. But history shows it bounces back.
- No Big Wins: You won’t beat the market—but for most, matching it is a win.
Tips for Index Fund Success
- Invest Regularly: Use dollar-cost averaging to smooth out market highs and lows.
- Diversify Further: Add international or bond funds as your portfolio grows.
- Stay the Course: Don’t panic-sell during downturns. Long-term investors win by holding steady.
Real-Life Success Story: Sarah’s $240,000 Nest Egg
Meet Sarah, a 30-year-old teacher who invested $200 a month in an S&P 500 index fund. After 30 years, her $72,000 in contributions ballooned to over $240,000—thanks to the market’s average 7% return. No stock-picking, no stress—just consistent investing through platforms like Fidelity or Vanguard.
Start Your Investment Journey Today
Index funds are your beginner-friendly path to low-cost, reliable wealth-building. Sign up with a trusted brokerage like Vanguard, Fidelity, or Charles Schwab, pick a fund, and start with as little as $50 a month. The sooner you begin, the more time your money has to grow. Take that first step now—your future self will thank you!
The Homeless Camper Wants to Live Leisurely in a Dungeon ~Even Dangerous Deep-Layer Monsters Are Just Ingredients to Me~
“What’s wrong? Are you okay?”
The two remained silent, but there didn’t seem to be anything unusual around them.
“Y-You defeated all the Minotaurs in a single strike? You were so fast that I could barely keep up with your afterimages…”
“I-I could only catch a glimpse. I didn’t know a human could move that fast…”
It looked like they had frozen up after watching my battle.
“I’ve taken down quite a number of monsters so far. Ideally, the quickest way is to decapitate them like that. These ones aren’t edible, but for monsters that are, cutting the carotid artery to drain the blood improves the meat quality. Also, some monsters keep moving even after their heads are cut off, so you should never let your guard down.”
I had told them this before, but I made sure to remind them again. In a dungeon, you can never afford to be careless.
“Y-Yes, understood!”
“Yeah, got it!”
Since I had gotten to know these two, I hoped they wouldn’t lose their lives to foolish overconfidence.
After that, we encountered monsters two more times. This time, we fought them without the advantage of a surprise attack, but we still managed to defeat them without anyone getting injured. Their stream ended safely.
“Thank you so much for today, Hige-Daruma-san!”
“Thanks a lot, Hige-san!”
“Yeah, I actually learned a lot about how dungeon streaming works today.”
I had spent the day with these two, and outside of combat, they were careful about the drone positioning to capture themselves properly. They stayed vigilant while introducing viewer comments, balancing both safety and entertainment as dungeon streamers.
…Meanwhile, my own streams were just me greeting the audience, quickly hunting monsters, then dismantling and cooking them. Hah, becoming a famous dungeon streamer might be harder than succeeding as an explorer.
“I’m glad to hear that. Our viewers were all blown away by your combat skills, Hige-Daruma-san!”
“I could barely see you move with my own eyes, so through the camera, they probably had to watch it in slow motion to keep up. I’m really glad I got to see your fighting style firsthand!”
Come to think of it, this was the first time Runa had properly seen me fight. Back when we faced the Behemoth, she was on the verge of passing out.
“Well, I’m glad you enjoyed it. At least now, I’ve answered all the necessary questions from the association, so we should be fine for a while. If anything else comes up from them, just let me know.”
“Understood.”
“Alright, that wraps up this stream. I actually had fun too, so thanks.”
“…Yeah, I guess so.”
“…Yeah.”
Kana and Runa’s expressions darkened.
“Hige-san! If it’s not a bother, would you be willing to appear on our stream again, even if it’s not related to the Japan Dungeon Association?”
“I’d like to ask the same! I know we’re being pushy, but could you please join us again?”
“………………”
With today’s stream, my obligation from the previous lateness incident was fulfilled. That meant my contract with them was complete, and our connection would effectively end here.
And yet, they were asking me to join them again.
Honestly, aside from my viewers, it had been a long time since I’d interacted with people this much. The past one or two weeks had been eventful, but not bad.
But…
“…Sorry, but I’ll have to decline. I prefer to take things easy and stream my dungeon explorations with my small but loyal audience.”
“I see…”
“That’s a shame…”
I felt bad, but if I kept appearing on their channel, things would eventually become troublesome.
Someone might figure out that I’m Hige-Daruma. I didn’t really care if my identity got exposed, but I didn’t want my quiet little stream to turn chaotic.
These two were popular dungeon streamers, which meant there were bound to be jealous troublemakers. The more I got involved, the more hassle it would bring. That’s why I had no intention of appearing on their streams again.
“…Actually, I have a favor to ask instead. Would you two be willing to appear on my dungeon stream occasionally?”
“Huh!? Are you serious!?”
“Really!?”
“Yeah. My channel might not offer much, but my viewers would be thrilled if you joined. Of course, I’ll compensate you properly.”
I wasn’t recklessly diving into dungeons like before. I had spent years avoiding interaction, but after the past few days, I felt like my perspective had shifted—just a little.
For some reason, I just couldn’t bring myself to cut ties with these two here. The old me, who holed up in dungeons, wouldn’t have even considered this.
“Yes, we’d love to!”
“Yeah, absolutely!”
“I-I see… Thanks.”
Kana and Runa, who had looked so down moments ago, now beamed at me with dazzling smiles.
Even though I was the one making the request.