Fund Types

Passive Fund

Definition

What is Passive Fund?

A fund that follows an index or systematic rule with limited discretionary security selection.

Example in practice

A passive fund replicates the constituents of a broad equity index.

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A mutual fund that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits.

A fund that invests primarily in shares and seeks long-term capital growth.

A fund focused on income-producing debt securities such as government and corporate bonds.

A single, relatively large investment made at one time instead of through repeated contributions.

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