Maybe Logo Early Access

Financial Terms / I - J / Index fund

Index fund

An index fund is a mutual fund or ETF that tries to replicate a benchmark index's performance. Investors cannot directly invest in a benchmark index and hence invest in index funds or ETFs that aim to replicate the performance of the underlying index.

For example, buying all the companies in the S&P 500 according to their proper weights is extremely difficult, requires higher capital, and is time-consuming. Investing in a fund can help remove all these hurdles by pooling money together and purchasing the relevant securities in the proper weights.

Discover more financial terms

Join the Maybe Maybe Logo waitlist

Join the waitlist to get notified when a hosted version of the app is available.

Don't want to wait? Self-host an early version of Maybe.

Maybe Screenshot