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An Index fund or Index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market. Tracking can be achieved by trying to hold all of the securities in the index, in the same proportions as the index. Other methods include statistically sampling the market and holding representative securities. Many index funds rely on a computer model with little or no human input in the decision as to which securities to purchase and is therefore a form of passive management.

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