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Investment

Index Fund

Also known as: Passive Fund, Index Tracker

Mutual fund that tracks a market index like Nifty 50 with low costs and broad diversification.

Detailed Explanation

Index funds are mutual funds designed to track the performance of a specific index like Nifty 50, Nifty 500, or Sensex. They offer broad market exposure, low operating expenses, and low portfolio turnover. These funds are passively managed and aim to replicate index returns rather than outperform the market.