Index Fund
An index fund is an investment fund that aims to match the performance of a market index, such as the ASX200.
Quick Reference:
Tracks an index. Low cost, diversification. Match market returns.
Expanded Explanation:
Instead of picking individual stocks, an index fund invests in al lthe companies that make up a specific index. If the asx200 rises, the fund rises too, because it owns all the sahres in the index.
Index funds are popular because they are low cost, provide instant diversification, and have historically performed well companred to many active managers. They are a simple way to get exposure to the market without needing to choose individual companies.