Index Fund

Knowledge Center

   

Description of Index Fund. Explanation.

Contents

Premium

 

Definition Index Fund. Description.


An Index Fund is a mutual fund or exchange-traded fund that mirrors its portfolio to that of a particular index, such as the DJIA, NASDAQ, Hang Seng Index or the S&P 500. The target is that its performance matches the performance of a the index.


They do not necessarily have to own all of the securities making up the index in the same composition; statistical sampling can be used.


Index funds assume that it is impossible to consistently outperform the market anyway because of Efficient Market Theory, so it is better to keep the costs low. Index Funds do that, because they are passively managed and do not require highly educated professional strategists and financial experts, since they merely mirror an index.
 


Index Funds Special Interest Group


Special Interest Group (9 members)


Index Funds Forum  

Recent topics

  Quotes on Index Funds. Quotations
Hi, do you know of a remarkable, humorous quote by a famous person or a proverb related to index funds?
Please enter a reaction to share it for oth...
     
 

Best Practices - Index Funds

Expert Tips - Index Funds



Advance yourself in business administration and management



Resources - Index Funds

Interview W. Blake: Golden Rules of Investing

 
 

News about Index Funds


     
 

Videos about Index Funds


     
 

Presentations about Index Funds


     
 

Books about Index Funds


     
 

More about Index Funds


     



Accelerate your management career



Compare with: Mutual Fund  |  Fundamental Analysis  |  Technical Analysis  |  Capital Asset Pricing Model  |  Behavioral Finance  |  Investor Sentiment  |  Institutional Investors  |  Rebalancing

Special Interest Group Leader

 
 

Return to Management Hub: Finance & Investing


More on Management  |  Return to Management Dictionary  | 

 

This ends our Index Fund summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V15.0 - Last updated: 10-12-2018. All names of their owners.