Index Hugger

A mutual fund that tends to perform very similar to a benchmark index like the S&P 500.


These funds aren't very attractive to investors. They'd be better off just investing in an index fund, rather than an equity mutual fund that ends up performing the same as the index (because the fees are much lower in an index fund). To avoid an index hugger, look for fund managers who are aggressive and individualistic.



Index Investing Tutorial - Get to know the most important market indexes, and the advantages and disadvantages of investing in them.

You Can't Judge an Index Fund by Its Cover - Despite appearances, not all funds of this type render the same return. Find out why before you invest!
Related Terms

Benchmark

Fund Manager

Index Fund

Mutual Fund

S&P 500

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