An index fund is a mutual fund that buys securities that represent some index. As an example, if we were to take the S and P500 index, an index fund that was representing that index would buy those 500 securities in the same relative weighting as the index has those securities. It’s really just implementing that index with real stocks.
You could have read the investment idea from my post about the Rule of 72 for Money Management and Financial Planning. And I had introduced how mutual fund (or unit trust fund) that could be a great tool to everyone to achieve financial goals.
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