Absolutely if you can only afford $50/$100 a month the an index tracking the FTSE or the DOW makes sense.
Once your portfolio gets bigger start having a minimum investment amount of $1000 you need to start thinking about diversification.
Once your portfolio gets bigger start having a minimum investment amount of $1000 you need to start thinking about diversification.
I mean it's better than picking stocks yourself, but what isn't? As long as it's equally easy to choose a good option and a less good option, why not choose the one that's better?
Buying an index fund composed of 500 large U.S.-listed companies is pretty diversified. I suppose you could diversify internationally, but no need to stray from index funds if you're not managing your money full-time.
That's the best I've managed to suss it out anyway, If you meant something different I'd be interested to hear it!