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Index Fund
Index fund is a type of mutual fund which tracks components of market index and is passively managed in order to lower the maintenance costs.
Most common tracked indexes are S&P 500m Russell 2000, MSCI EAFE, DJ Wilshire 5000 and Lehman Brothers Aggregate Bond Index.
Because of infrequent and automatic transactions of index funds, maintenance costs are lower than costs actively managed funds.
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