BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The biggest difference between index funds and mutual funds is that index funds invest in a specific list of securities (such as stocks of S&P 500-listed companies only), while active mutual funds invest in a changing list of securities, chosen by an investment manager.

Detailed explanation-2: -Key Takeaways. An index fund is a portfolio of stocks or bonds designed to mimic the composition and performance of a financial market index. Index funds have lower expenses and fees than actively managed funds. Index funds follow a passive investment strategy.

Detailed explanation-3: -An index fund weighted by market capitalization invests more into certain companies than others. Regardless of the overall scale of companies that an index represents – small-cap, mid-cap, or large-cap – the index is stacked heavily in favor of the largest companies in the index.

Detailed explanation-4: -Tracker funds are also known as index funds, designed to offer investors exposure to an entire index at a low cost. These funds seek to replicate the holdings and performance of a designated index, constructed as ETFs or alternative investments to meet the fund’s tracking objective.