If Index Funds are so good why does everyone not invest in them but individual stocks?
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Vanguard has 50 million customers with $9 trillion invested, mostly in a variety of mutual funds and ETFs. Fidelity, Schwab, and all the big name brokerages do hundreds of millions of dollars in business from funds. I don’t know where you get the idea that people don’t invest in them.
Reasons to choose a stock over a fund are (1) you have an interest in the company and want to directly invest in it, (2) you want to control the number of shares you own and you want to control when or if those shares are sold or additional shares are purchased, (3) you want an accelerated rate of growth compared to what you get with funds, and you have the risk tolerance to do that, (4) you may have the opportunity to buy a stock at a low initial price to make good money from it when you sell, (5) you just enjoy stock trading.
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