A mutual fund is typically fashioned by an investment firm. The whole thing is publicized and the share holders are then encouraged to put their money in this mutual fund.

Availability of Index Mutual Funds

The history of Vanguard is quite interesting. It's founder, John C. Bogle, is credited as the creator of index funds. Everything starts with the undergraduate thesis of Bogle, who discovers that 75% of the mutual funds that existed in the market weren't able to beat the Standard & Poor (S&P) 500 index.

At that time, it was considered impossible to buy an index. For that motive, he decided to create one. In 1976 he launched the first index fund, the Vanguard 500, who followed the S&P 500 index. Since it's creation, this fund has outperformed the majority of mutual funds of the market.

The additional advantage of Vanguard is that it is a no-load fund firm. That means that the firm doesn't charge you a commission for buying and selling the index fund. So, besides making you earn more money than a mutual fund, it saves you money on management fees. All of this makes Vanguard index funds one of the top index funds in the market.

Fidelity Investments (also known as the FMR Corporation), was founded in 1946. After more than 50 years, this company has been able to attract 21 million investors from all around the world. It has more than 300 different funds, and it offers it's services in 100 cities inside the USA, Canada, Europe and Asia. In 2005, it's revenues were in the order of $11.1 billion.

The great thing about Fidelity index funds is that they evaluate them each quarter, and, that information is available, for free, at the Internet. You can compare index funds of different kind, like the Fidelity Europe Capital Appreciation Fund, the Fidelity Intermediate Municipal Income Fund or the Fidelity Worldwide Fund. That way you can make your decision very easily, without having to make huge amounts of research.

Even after so many years, there are people who still prefer to invest in actively managed funds. It may be because we like to think that we can predict the future, or maybe we want to test our luck. But the truth, after many, many years, is that index mutual funds are the best way to invest your money in the money market. So look for the best index funds that you can find and use your money wisely.

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