Term

Index fund

A fund that doesn't pick individual companies but buys every stock in a given index. It costs less than funds run by managers who choose by hand.

The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life, JL Collins

Explained in

• The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life, JL Collins
• A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, Burton G. Malkiel

  A fund that doesn't pick stocks but simply buys every security in an index, in the same proportions. It usually charges a low fee.

• I Will Teach You to Be Rich, Ramit Sethi

  A fund that mirrors the makeup of a market index instead of picking individual stocks. Such funds usually have low fees.

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