what is the INDEX FUND ?

Question

Hi Dears
Please anyone can explain what is the INDEX FUND ?
wich Mutual Fund is investing in Day Trading ?

Hope i will get clear answer

Thanks

Answer 1

Index Fund is the fund that invests in only index based funds. (not in medium or small caps).
MutualFunds don't do day trading.

Answer 2

An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market.

Tracking can be achieved by trying to hold all of the securities in the index, in the same proportions as the index. Other methods include statistically sampling the market and holding "representative" securities. Many index funds rely on a computer model with little or no human input in the decision as to which securities to purchase and is therefore a form of passive management.

The lack of active management gives the advantage of lower fees. However, the fees will always reduce the return to the investor relative to the index. In addition it is impossible to precisely mirror the index as the models for sampling and mirroring, by their nature, cannot be 100% accurate. The difference between the index performance and the fund performance is known as the 'tracking error'.

Index funds are available from many investment managers. Some common indices include the S&P 500, the Wilshire 5000, the FTSE 100 and the FTSE All-Share Index.

There are many Index Mutual Funds in India. There are also some in the US that follow the Indian Market. INP, IIF, IFN etc.

GL

KKP

Answer 3

An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market.

Tracking can be achieved by trying to hold all of the securities in the index, in the same proportions as the index. Other methods include statistically sampling the market and holding "representative" securities. Many index funds rely on a computer model with little or no human input in the decision as to which securities to purchase and is therefore a form of passive management.

The lack of active management gives the advantage of lower fees. However, the fees will always reduce the return to the investor relative to the index. In addition it is impossible to precisely mirror the index as the models for sampling and mirroring, by their nature, cannot be 100% accurate. The difference between the index performance and the fund performance is known as the 'tracking error'.

Index funds are available from many investment managers. Some common indices include the S&P 500, the Wilshire 5000, the FTSE 100 and the FTSE All-Share Index.

Answer 4

an index fund is a mutual fund that tracks an index, if it was a dow-60 index, it would have the same shares , at the same proportions as the stocks that make up the dow-60 index.

There are indexes for the S & P 500, Russel 2000, sector indexes , foreign country indexes. and on and on and on.

Index funds usuall have lower ongoing costs (MER) because they do not buy and sell stock much once there index is bought, only buy when new money comes in, only sell when more money goes out

Don't day trade, you will lose money