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index investing

Definition

Purchasing shares of an index fund. Index investing requires less research because it is an investment in all of the securities in an index. This is different from investing in mutual funds because mutual funds can be comprised of multiple stocks from different indexes, as opposed to index investing which deals with multiple stocks trading on the same index.

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Nearby Terms

index bond
index ETF
index fund
index fund shares
index futures
index investing
index loan
index method
index model
index number
index number problem

Popular 'Mutual Funds' Terms

hedge fund
mutual fund
security
turnover
risk
intrinsic value
beta
share
purchase
expense