An affordable way for investors to invest in a diversified basket of securities; constructed to track the components of a market index such as the S&P 500 or the S&P/TSX Composite is with a(n) ____________ fund.

Question

Quizplus · Accepted Answer

An index fund is a type of mutual fund that tracks the components of a market index, such as the S&P 500 or the S&P/TSX Composite. Index funds are typically passively managed, meaning that the fund manager does not make active decisions about which securities to buy or sell. Instead, the fund manager simply buys and sells securities to match the composition of the index. This makes index funds a relatively low-cost way for investors to invest in a diversified basket of securities.

An Affordable Way for Investors to Invest in a Diversified