Index Funds
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An index fund is a fund that follows a passive investing strategy, meaning that the fund managers attempt to match an identified benchmark index, not outperform it. Investment fund designed to match the returns on a stock market index; a mutual fund with a portfolio that matches a broad-based index such as the S&P 500 and a performance mirroring it. |
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Additional Comments:
Finding the right index fund for your portfolio is a two-step process:
1. Decide what index you want to have represented in your portfolio. 2. Find an investment that inexpensively and faithfully tracks the index you have in mind. |
Related Terms: | ||
Actively Managed Funds In most actively managed funds, the fund manager makes specific investments with the goal of outperforming ... Exchange-Traded Fund (ETF) A fund that tracks an index, but can be traded like a stock. Many ETFs ... Fund Manager The person responsible for the allocation of pooled money invested in a particular mutual fund. He/she is ... |
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