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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

Sector Funds

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

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Net Asset value (NAV)

Understand the meaning and definition of Net Asset value (NAV) in the context of stock market, trading, and investments.

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Debt Funds

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

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Exchange-Traded Funds (ETF)

Understand the meaning and definition of Exchange-Traded Funds (ETF) in the context of stock market, trading, and investments.

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Scheme Information Document

Understand the meaning and definition of Scheme Information Document in the context of stock market, trading, and investments.

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Actively Managed Funds

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

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