You're here:  Home --> Dictionary --> I --> Index Fund

Stock Index
Mutual Fund
Net Asset Value
Prospectus

Index Fund
Term category: Mutual Funds
In 10 words or less:  A mutual fund that invests in a broad index.

Definition: Index funds take a passive investment approach and simply attempt to mimic the returns of a broad index, such as the S&P 500.

StockJargon Advice: Index funds are great for investors who don't want to worry about following the market and selecting their own securities.  Also, index funds offer lower fees.

Interestingly enough, it's been found that index funds actually outperform the majority of all actively-managed mutual funds.  This is something to keep in mind when selecting which funds to invest in.

Related Articles

Index Funds
Learn about the type of mutual fund that outperforms 85% of all other mutual funds…

A Look Into Mutual Funds
So you want to start investing but are afraid to risk your money in one stock. Well, mutual funds might be the safer alternative for you….

Fund Classifications
Learn about the different types of fund classifications and objectives…

Related Books

Morningstar Guide to Mutual Funds by Christine Benz
Common Sense on Mutual Funds by John Bogle
Mutual Funds for Dummies by Eric Tyson
Morningstar Funds 500 By Morningstar Analysts

# -A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z