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index fund

noun
1.
a fund, as a mutual fund or pension fund, with a portfolio that contains many of the securities listed in a major stock index in order to match the performance of the stock market generally.
Origin
1975-1980
1975-80
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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Examples for index fund
  • The majority cannot outperform themselves, so the majority is better off in a low cost index fund.
  • The best that the average long term investor can do is buy an index fund and hold it forever.
  • Therefore, performance of an index fund will generally be less than its benchmark index.

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