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What does passively managed fund mean?

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passively managed fund
Noun


An investment fund that is constructed to passively achieve returns that closely correspond to its reference market index, such as the S&P 500, DAX 30 or FTSE China 50, where the fund manager buys and holds securities of the benchmark index without a management team making subsequent investment decisions.

Synonym(s): 
  • index fund; index tracker; passively managed index fund.
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