A portfolio of stocks or bonds intentionally designed to match the makeup and performance of a financial market index. Based on the theory that over time the market will outperform any single investment, an index fund aims to match the risk and return of the market as a whole. An index mutual fund provides exposure of investments to a broad swath of the market and operates with low expenses and low portfolio turnover, making it a relatively smart investment for the average investor.
Index Mutual Fund
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Index Mutual Fund.