Funds
What is index fund?
A fund that simply copies a market index instead of trying to beat it.
Explained in more detail
Because nobody is picking stocks, fees are very low. You accept the market’s return rather than trying to do better than it. Over long periods, most professional managers fail to do that anyway.
An example
For instanceA Nifty 50 index fund holds the same 50 companies in the same proportion.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time index fund appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.