Meaning of “index fund” in the English Dictionary

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"index fund" in Business English

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index fundnoun [ C ]

uk us UK also tracker fund FINANCE

a sum of money that is invested in a stock index (= a fixed set of shares on a particular stock market). Investors buy parts of the fund, which has low costs because it is not managed.

(Definition of “index fund” from the Cambridge Business English Dictionary © Cambridge University Press)