It is a general belief in investors that hand picking stocks can give higher return than that of market. I know there are many investors out there who believe that they have the knack of picking stocks and they can beat the market by buying low and selling high.

But in reality no one can predict the market and no one can predict the future of the company. You can never guarantee that the stock that you picked will give you great return. After all one bad news from the company and the stock can become worthless while you are working at your office or enjoying getting tanned at the beach.

It has been studied time and again that the index fund return is the best return considering overall market risk. There is no other investment instrument that is better than something that can cover the complete market. Here is a quote from William F. Sharpe "The only way to be assured of higher expected return is to own the entire market portfolio" published in Money Magazine. Full story can be obtained at http://money.cnn.com/2007/05/21/pf/sharpe.moneymag/index.htm.

So don't worry about picking stocks. Invest in index fund, have a long term vision and have peaceful sleep in the night. Break free from spending hours and hours doing research in one stock and still having the maximum risk of investing in one stock.

Vanguard ( http://www.vanguard.com ) and T. Rowe Price ( http://www.trowprice ) are my favorite funds. Buy low cost index fund from any of these (Vanguard beat others when it comes to indexing in terms of fees) and sail towards your road to riches.