What is a low-cost index mutual fund??????

explain in detail please

A low-cost index mutual fund is a mutual fund that try's to replicate the return of an index (lets use the S&P 500). Because there is no specific strategy and they are just mainly trying to replicate the proportions of equities in the index to replicate the return there is usually little cost to the index management. A low cost just mean that compared to other mutual fund the management fees are very low (lets say 0.3% compared to 2%), there is the lower cost because it is a passive strategy not an active strategy.

Also, there are many different ETF's that do the same thing as low-cost index mutual funds and may have lower fees.

www.mfea.com.

A mutual fund is a "basket" of investments designed to reach a specific goal.

In this case, the mutual fund is designed to track a certain "index" ( a specific group of stocks, bonds, etc...) - For example, the S&P 500

The Low-Cost means, of course, it is not very expensive.

Therefore, into is an inexpensive mutual fund that tracks a certain index.

Here's an example of one:
http://finance.yahoo.com/q?s=VFINX

To go along w/ others:

'Actively managed funds' have a manager that attempts in good faith for the fund to make money, by buying & selling assets for it. The downside is that you are susceptible to the whims of the management team, the fund has to pay these people to do what they do, plus actively moving money around generates capital gains, meaning the tax man takes a bigger piece (possibly a MUCH bigger piece) - even owning a mutual as a long term investment can generate capital gains due to the activity 'behind the scenes').

An index fund, in comparison, is passive. It employs a 'buy & hold' strategy for it's assets. Far less administration & far fewer tax hits on the fund. The broader the index fund, the less risk. Example: The Vanguard Total Stock U.S. has as it's sole risk the U.S. market in general. Management risk, tax risk, specific sector risk is all minimized, since it is designed to mimic the U.S. stock market as a whole.