An index fund is a fixed or variable income investment fund that tries to replicate the behavior of a certain market index, such as IBEX 35, Eurostoxx 50, Nikkei 225 or S & P 500 or also a certain basket of securities, within equities or some kind of interest in the case of fixed income.
The index funds are managed passively, that is, they replicate the composition of the benchmark that they have as , without the managers making decisions regarding the weighting of the values that are included within the fund or preferred sectors . The main advantage of this type of funds is that management fees are lower than those of other funds that are actively managed.
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