A fund that holds all (or a representative sample of) the securities in a market index, rather than picking stocks.
Because it doesn’t pay analysts to pick stocks, an index fund charges far less than active management — and most active managers underperform their benchmark index over long periods after fees.
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FAQ
What is Index Fund in simple terms?
Because it doesn’t pay analysts to pick stocks, an index fund charges far less than active management — and most active managers underperform their benchmark index over long periods after fees.