Passive fund

Investment funds - strategies.

Passive investment funds track a market index, or a specific market segment, by investing in a representative portfolio of assets, following a predetermined formula.

By contrast, active funds engage a fund manager who uses skill and judgement to select the investment assets.

Passive funds generally have substantially lower fees, reflecting the research and analysis costs saved.

See also

• Active fund
• European Fund and Asset Management Association
• Fund
• Fund manager
• Hedge fund
• Institutional investor
• International Monetary Fund
• Money market fund
• Mutual fund
• Passive
• Pension fund
• Pension Protection Fund
• Portfolio
• Tracker fund