The investing world can often seem very confusing to the beginner. From mutual funds to hedge funds, stocks to commodities, many people find it hard to trust what to do. However, it can be much simpler. Investing in a few index funds or exchange-traded funds can give you all the diversity you need. It is true that indexing isn't perfect. Neither is any other investing plan. Indexing's strongest feature is its simplicity. You can keep fees low and only have to rebalance once a year. The less fees you pay, the more money you keep. The simpler the plan, the more time you have for more important activities in life.