For a long period of my life, investing was this deep dark abyss I dared not approach. Each time I tried to learn about it, I would feel confused in a way that overwhelmed me.
Investing explanations online assume you already know the basics. Terms like mutual fund, ETF, and index are sometimes used interchangeably, which makes it difficult to understand the actual meaning of anything.
Investing in the stock market intimidated me as a post grad because the terms are inherently complicated, even if the concepts themselves are not. Once I realized that, it became easier to approach and learn more about them without feeling overwhelmed.
Why I want to start investing
I am obsessed with learning new things. Growing PGM and its social media accounts gives me a lot of homework and new things to learn.
I want to be financially secure, and to have multiple streams of diversified income. I have also generally heard great things about index funds.
Moreover, saving now feels like I’m not doing enough. At first, letting money sit in my account felt safe and like the responsible thing to do. Now, I know enough to understand that I’m actually losing value due to inflation. Investing is the best way to give your savings a job, so they can grow with the economy, instead of losing their value.
I would also like to build good financial habits now that will benefit future me. We all know that investing is not a get rich quick scheme. But see Dogecoin. It’s about compounding and setting yourself up for a good future.
Leo made it look so cool in the movie lol.
I know that I am investing with a long time horizon and was not planning to use this money in the near future. But the thing about me? I get obsessive about topics and need to learn everything there is to know before I go all in. I would like to fully understand these funds before I invest a fat chunk of my savings.
In this article, I will provide a simple introduction to index, ETF, and mutual fund investing and share tidbits I’ve learned.
What is an index and index investing?
An index is a list of companies grouped together under certain rules. Index investing is investing in a fund that tracks an index. When the index does well, the fund goes up. When it goes down, the fund goes down.
The appeal of index investing is efficiency. Instead of researching and picking individual companies, you are participating the market’s growth over time.
How are index funds different from mutual index funds?
Index funds are not to be confused with mutual index funds, but the latter term combines two different things. An index fund describes the fund’s investment. A mutual fund or an ETF describes the fund’s structure.
What is a mutual fund?
A mutual fund is a pooled investment bought directly through a fund company. When you invest in a mutual fund, the company adds your money to the pool and invests it according to the fund’s rules. With this fund type, you buy and sell at the trading day’s end, after the market closes.
An ETF, or exchange-traded fund, also holds a group of investments. ETFs trade on the stock market throughout the day, just like stocks. You can buy or sell shares at their market prices while the market is open.
Both mutual funds and ETFs can track an index.
Tell me about QQQ.
The Invesco QQQ Trust (QQQ) is an ETF that tracks the Nasdaq-100 index. This index consists of 100 of the largest non-financial companies listed on the Nasdaq stock market exchange. It is known as being tech and innovation-heavy, meaning it is full of really popular tech companies.
Some of the top holdings include:
- Microsoft Corp.
- Apple, Inc.
- NVIDIA Corp.
- Amazon.com
- Meta Platforms, Inc.
- Broadcom Inc.
- Alphabet Inc.
- Tesla Inc.
- Costco Wholesale Corp.
Here are some more fun facts about QQQ, according to its website:
- It is ranked 3rd out of 393 large-cap growth funds for 15-year total return by Lipper as of 2025.
- It is the 2nd most-traded ETF in the U.S. as of 2025.
- It has 25+ years of history and is recognized as one of the oldest ETFs.
Why I invested in the QQQ ETF
The QQQ ETF is known as a riskier investment than the average S&P 500 stock. I wanted to invest in a fund with more volatility! I was tired of investing in a “safe” fund or stock and regularly seeing little-to-no action or movement. And risk doesn’t necessarily mean recklessness.
I know what I am getting myself into and am well aware that there will be periods where the value drops really sharply. I’ll be down bad. But it doesn’t mean my investment failed! It’s just the market being the market.
For many investors, losing a lot of investment money value can cause doubt and stress. In 2026, I definitely want to get better at sitting with discomfort. I think investing in a riskier fund will help a lot with building that skill.
The great thing about this kind of investment is that there is no need to watch it, react, or adjust anything. You can just SET IT AND FORGET IT! That might be aging me but I don’t care!
This works for me because as a law student, I have little extra time to be monitoring stocks and funds.
Index investing is also reassuring because it removes a lot of pressure to predict which stock will blow up next. There is no need to check news articles for this information.
This approach feels very realistic and sustainable for my lifestyle. The simplicity makes it sustainable for me. I don’t want investing to be a full-time project, I want it to exist quietly in the background while I focus on my last year of school, find a job, and continue building the Post Grad Money brand.
Wrap-up
I hope you enjoyed reading this article. I am not an expert by any means, I am just someone who wants to slow down and understand the basics before taking any steps! Follow my journey if you’d like!
Check out the rest of the blog for personal finance guides, tips, and more!