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Mutual Funds

Passive Funds

A passive fund is an investment option that utilizes a market index or a specific market segment to determine its portfolio's composition and identify potential investment opportunities. This approach differs from active funds, as the fund manager does not actively research individual stocks for inclusion in the portfolio. Instead, passive funds rely on the overall performance of the chosen index or segment to guide their investment decisions. This strategy offers a more hands-off approach for investors, with the goal of achieving a return in line with the chosen market benchmark.

Related terms

Direct Plan

Understand the meaning and definition of Direct Plan in the context of stock market, trading, and investments.

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Dividend Payout

Understand the meaning and definition of Dividend Payout in the context of stock market, trading, and investments.

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Global Funds

Understand the meaning and definition of Global Funds in the context of stock market, trading, and investments.

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Repurchase Price

Understand the meaning and definition of Repurchase Price in the context of stock market, trading, and investments.

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Launch Date

Understand the meaning and definition of Launch Date in the context of stock market, trading, and investments.

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Expense Ratio

Understand the meaning and definition of Expense Ratio in the context of stock market, trading, and investments.

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