Index Mutual Funds
What is an Index Fund?
Index mutual funds attempt to mirror the performance of a market such as the TSE-300 by buying all the stocks that make up the index in the same proportions. Some index funds use derivatives to provide investors with exposure to the performance of a market index.
Index funds are appropriate for long-term “buy and hold” investors who are prepared to ride out market highs and lows. The suitability of index funds should be considered within the context of a balanced portfolio.
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