What exactly is an index tracking or passive fund?


Trying to describe a passive, index or tracker fund is a lot harder than it might seem. Take a look at some excerpts from descriptions, by the manager
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I think the investment fund industry repeatedly creates a new rod for itrs back by coming up with these new terms that ordinary mortals like me just don’t understand.

And why should we. Why should we need to got to the mountain. Shouldn’t it come to us.

It’s our money it wants to attract so why speak to us in some gobbledygook we cant understand.

I dont just mean passive fund like this article is referring to I mean the whole of the financial services fund industry.


Oh dear, I can’t speak for the whole of the finance industry, but I had hoped this would clarify things about passive funds.

What is it that needs further explanation?




I think he explained it pretty well Lets do it. It was a more comprehensive explanation of passive investments than I remember coming across.