Skip to main content
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

Portfolio Manager

Understand the meaning and definition of Portfolio Manager in the context of stock market, trading, and investments.

MORE
Default Risk

Understand the meaning and definition of Default Risk in the context of stock market, trading, and investments.

MORE
Redemption of Units

Understand the meaning and definition of Redemption of Units in the context of stock market, trading, and investments.

MORE
Balanced Funds

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

MORE
Global Funds

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

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store