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Did you know that Warren Buffett recommends ordinary investors to invest in low cost funds that track stock market indices?

"The case for index funds simply depends on a truism; that the performance of the average investor must be based on the performance of the market before costs. Some managers will beat the market, but can we identify them in advance? If we cannot, then we are likely to pay 1-2% a year in expenses for nothing. And let us suppose we did have a way of reliably identifying the stars; then investors would give all their money to the stars and none to the underperformers. But some of the stars would have to fade ... all investors cannot be "above average"." -- From Buttonwood, an Economist columnist and blogger.

Academic research has proven Buffett and Buttonwood right, time and again. An example

http://www.nytimes.com/2009/02/22/your-money/stocks-and-bonds/22stra.html?_r=1&ref=business

But you are likely to hear this argument against index funds from someone who has a invested interest in recommending managed funds: say an insurance agent trying to sell an insurance-linked product

http://www.guardian.co.uk/money/2009/may/17/tracker-investment-funds

For any easy way to invest in a stock market index fund, go to 

What is an EFT? and Investing in the STI Index.