Passively Managed Fund
A passively managed fund is an investment fund that aims to mirror the performance of a designated market index by holding the same securities in the same proportions (or via a representative sample), rather than attempting to outperform the index.
Example: A passively managed fund that tracks the S&P 500 seeks to replicate the index by holding the same 500 stocks in roughly the same weights, typically with a lower expense ratio than an actively managed fund.
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