8 Dirt-Cheap Index Mutual Funds for Thrifty Investors

Cost is one of the biggest edges for index mutual funds, which don't need to pay large money management teams to run the show. Annual expenses pull on your returns both in the form of actual fees paid and lost opportunity cost; every dollar you don't pay a fund provider is a dollar that's getting invested and compounding over time.

But index funds' actual performance isn't anything to sneeze at, either. Actively managed mutual funds routinely fail to beat the benchmark indices, and it has been that way for a long time. So if you can't beat the index, why not join it?

Selecting an index fund comes down to knowing the index you want to track, then finding an inexpensive product that does it. That straightforward nature makes index funds an ideal choice for most investors, but especially beginners looking to gain broad market exposure cheaply and efficiently. Today, we'll help start your search by examining index mutual funds that provide inexpensive access to popular stock and bond benchmarks.

You'll notice a theme: Fidelity Investments is large and in charge. Scott O'Reilly, head of index, sector, international and factor products at Fidelity, says the company can keep expenses low thanks to its status as a private