5 Ways to Invest in the Stock Market Without Picking Stocks

Investing in the stock market is one of the smartest ways to build your wealth over time. But let’s face it—choosing the right stocks can be a real headache, not to mention risky and time-consuming.

What if there was a way to invest in the stock market without the hassle of researching individual stocks? Well, you’re in luck! There are plenty of passive investing strategies that let you enjoy market growth without the stress of trying to pick the next big winner.

In this comprehensive guide, we’ll take a look at five straightforward ways to invest in the stock market without having to choose individual stocks. Whether you’re just starting out or you’re looking for a more hands-off approach, this article will help you make smart choices and effortlessly build your wealth over the long haul.

1. Invest in Index Funds – The Easiest & Safest Approach

If you’re after a straightforward and reliable way to invest without the need for stock picking, index funds are your best bet.

What Are Index Funds?

An index fund is a type of investment fund that automatically tracks a stock market index, like the S&P 500, Nasdaq 100, or Dow Jones. Instead of putting your money into individual stocks, you’re investing in a collection of stocks that mirror the overall market.

Why Index Funds Are a Great Choice

✅ No Stock Picking Needed – The fund automatically follows the market.

✅ Diversified Portfolio – Helps minimize the risk of putting all your eggs in one basket.

✅ Low Fees – Much more affordable than actively managed mutual funds.

✅ Steady Growth – Historically delivers 8-10% annual returns over time.

Best Index Funds to Invest In

Here are some top-notch index funds you might want to consider:

• Vanguard S&P 500 ETF (VOO) – Invests in the top 500 US companies.
• Schwab Total Stock Market Index Fund (SWTSX) – Provides broad market exposure.
• Fidelity ZERO Large Cap Index Fund (FNILX) – No expense ratio (very low cost). 

Looking to dive into the world of index funds? 

Here’s a simple guide to get you started!

• First things first, open an account with a reputable brokerage like Vanguard, Fidelity, or Schwab. 
• Next, hunt for a low-cost index fund—some popular options include VOO, FNILX, or SWTSX. 
• Once you’ve found the right fund, set up a plan to invest a fixed amount each month. 
• This strategy, known as dollar-cost averaging (DCA), helps you build your investment steadily over time.

Pro Tip: 

The sooner you start investing, the more your money can grow! Even putting away just $100 a month can blossom into a six-figure portfolio in a few decades!

2. Consider a Robo-Advisor – A Stress-Free Way to Invest for Beginners

If managing your investments sounds daunting, why not try a robo-advisor?

So, what exactly is a robo-advisor? It’s an AI-driven investment platform that takes the reins, investing your money according to your personal goals and risk appetite.

Here’s why robo-advisors are fantastic for those who prefer a hands-off approach:

✅ No Need for Stock Picking – The algorithm handles all the heavy lifting for you.

✅ Low Minimum Investment – Some platforms let you start with as little as $10.

✅ Tax Optimization – They help minimize the taxes you owe on your investments.

✅ Automatic Rebalancing – Your portfolio gets adjusted automatically as market conditions change.

Top Robo-Advisors to Check Out in 2025:

• Betterment – Perfect for those just starting out.
• Wealthfront – Offers tax-loss harvesting to help you save.
• M1 Finance – Gives you the freedom to customize your portfolio.

Looking to dive into the world of robo-advisors? 

Here’s how to get started!

• First, sign up with platforms like Betterment, Wealthfront, or M1 Finance. 
• Next, answer a few simple questions about your investment goals. 
• Then, just deposit your money, and let the AI take care of the rest by investing for you!

Pro Tip: 

Robo-advisors automatically adjust your investments, so you can relax without having to check the market every single day!

3. Invest in ETFs – Low-Cost & High Diversification

If you want an easy way to invest without the hassle of picking individual stocks, consider Exchange-Traded Funds (ETFs).

So, what exactly are ETFs?

An ETF, or Exchange-Traded Fund, is an investment fund that holds a variety of stocks but trades on the stock market just like a single stock.

Why are ETFs a smart choice for investors?

✅ Lower Cost Than Mutual Funds – They’re generally cheaper than traditional funds.

✅ Diversified Portfolio – You can invest in many stocks all at once.

✅ Easy to Buy & Sell – Since they trade like stocks, you can jump in or out whenever you want.

Best ETFs for Beginners

• Vanguard Total Stock Market ETF (VTI) – This one covers the entire US stock market.
• SPDR S&P 500 ETF (SPY) – It tracks the S&P 500 Index.
• Invesco QQQ ETF (QQQ) – This focuses on tech giants like Apple, Amazon, and Google.

How to Invest in ETFs?

• Start by opening a brokerage account with Robinhood, TD Ameritrade, or Fidelity.
• Then, search for an ETF (like VTI, SPY, or QQQ).
• Buy shares of the ETF and hold onto them for long-term growth.

Pro Tip: 

Look for ETFs with low expense ratios (under 0.2%) to maximize your returns!

4. Invest in Mutual Funds – For Long-Term Investors

If you’d rather leave the stock picking to the pros, mutual funds are a fantastic option for investing.

What Are Mutual Funds?

A mutual fund gathers money from multiple investors and invests it in stocks, bonds, or other assets, all managed by professionals.

Why Mutual Funds Are a Fantastic Choice for Passive Investors

✅ Managed by Experts – You can leave the stock analysis to the pros.

✅ Perfect for Retirement Accounts – Commonly found in 401(k)s and IRAs.

✅ Less Risky Than Individual Stocks – Offers a nice mix for diversification.

Top Mutual Funds to Consider for 2025

• Fidelity Contrafund (FCNTX) – Excellent for long-term growth.
• Vanguard Wellington Fund (VWELX) – A balanced approach with stocks and bonds.
• T. Rowe Price Blue Chip Growth Fund (TRBCX) – Focuses on major tech companies.

How to Get Started with Mutual Funds?

• Open an account with Vanguard, Fidelity, or Schwab.
• Look for a highly-rated mutual fund (like VWELX or TRBCX).
• Commit to investing a set amount each month for steady growth.

Pro Tip: 

Mutual funds are best suited for long-term investors since they typically come with higher fees compared to ETFs or index funds.

5. Invest Through a 401(k) or IRA – The Smartest Retirement Strategy

If you’re planning for retirement, putting your money into a 401(k) or IRA is a wise choice.

Why Go for a 401(k) or IRA?

✅ Tax Benefits – Keep more of your profits by paying fewer taxes.

✅ Employer Match (401k) – Snag some free money from your employer.

✅ Long-Term Wealth Growth – Helps build your retirement savings effectively.

Different Types of Retirement Accounts

• 401(k) – A retirement plan sponsored by your employer.
• Traditional IRA – Enjoy tax-deferred growth (pay taxes later).
• Roth IRA – Make tax-free withdrawals when you retire.

How to Begin Investing in a 401(k) or IRA?

• Check with your employer about 401(k) matching.
• Set up a Roth IRA or Traditional IRA with Fidelity or Vanguard.
• Focus on index funds or ETFs to build your wealth over time.

Pro Tip: 

Always contribute enough to take full advantage of your employer’s 401(k) match—it’s essentially free money!

Final Thoughts: The Easiest Way to Invest Without Picking Stocks

If you're looking to invest without the hassle of choosing individual stocks, these five options are your best friends.

For those just starting out: Consider diving into index funds or ETFs.

For a more hands-off approach: A robo-advisor could be your perfect match.

For your retirement savings: Make sure to max out your 401(k) or IRA.

By opting for any of these strategies, you can grow your wealth without the stress of stock-picking.

Ready to take the plunge into investing? Start today and pave the way for a secure financial future!