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FAQs
Subject
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Mutual Fund/ETF
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Index rebalancing related to passive fund
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Index rebalancing related to passive fund
Index rebalancing
Date: 25 FEB
Answered By: Tasis Management
Question
What is Index rebalancing?
Answer
An index is supposed to reflect the market it is supposed to track. Hence, it is necessary to periodically make changes in the stocks which constitute the index. Some stocks may be added, while some others deleted. The weights of the stocks may also change. Please note that a passive fund must copy the index exactly.
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