S&P 500 Index

The S & P 500 stands for Standard and Poor's 500. I know the name does not encourage you to invest! But in the U.S this stock market index tracks, the largest top 500 publicly traded companies in the country.

It is seen as the best indicator of the overall performance of the American stock market. The S & P 500 is a very popular index fund especially if you are starting out in the stock market and you don't want to be too risky. It is also easier to buy than buying individual stocks. The return is 10% on your investment annually. So if you invest $1000 you will gain $100 each year.