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An investment strategy is centered on a risk-return tradeoff for a potential investor. High return investment instruments such as real estate and mutual funds usually have more risks associated with it than low return-low. Value investing is a style or profile of investing that was innovated by Benjamin Graham and David Dodd in their famous work ‘Security Analysis.’ This book was first published in 1934. Warren Buffett has contributed to the value investing concept by propounding the idea of “finding an outstanding company at a sensible price.”  While trading in index funds offers broad market exposure, it involves low operating expenses. The reason for low expense ratio is because most index funds are not actively managed. This type of model is called passive fund management. Index funds are based on a theory known as the efficient market hypothesis (EFH). This theory states that as stocks are valued with accuracy, it is not possible to beat the market easily.