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FAQs
Subject
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Mutual Fund/ETF
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Passive Fund
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Passive Fund
Passive Mutual Fund
Date: 13 APR
Answered By: Tasis Management
Question
What is a Passive Mutual Fund?
Answer
A passive mutual fund is a fund that tracks a market index (like Nifty 50, Sensex, or Nifty IT) i.e. in its portfolio the fund has all the constituent of the Index it is tracking with same weightages as in the index. Hence, the fund manager invests the funds to reflect the structure of the index. He does not exercise his discretion in selection of the stocks. The fund aims to match the index performance, not beat it
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