Index funds,while trying to match market performance,consistently underperform market benchmarks.

Name: Index funds,while trying to match market performance,consistently underperform market benchmarks.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The statement is false. Index funds are designed to track a specific market index and therefore aim to replicate its performance. While there may be slight deviations due to expense ratios and tracking error, the overall goal of index funds is to closely match the market benchmark.

Index Funds,while Trying to Match Market Performance,consistently Underperform Market Benchmarks