Glossary
- iBoxx indices
- ifo Business Climate Index
- In the money
- Independent broker
- Index
- Index certificate
- Index fund
- Indicative price
- Individual custody
- Industry group
- Industry risk
- Initial charge
- Initial dividend
- Initial Public Offering (IPO)
- Insider
- Interim dividend
- Intra-Day-Trading
- Intrinsic value
- Investment certificate
- Investment fund
- Investment guidelines
- Investment horizon
- Investment product
- Investment trust
- Investor relations
- IPO
- IPO-Window
- ISIN
- ISM Index
- ISMA Return
- Issue
- Issuer
- Issuing price
Index fund
Fund that mirrors the composition of a particular stock index
Like individual stocks, index funds can be traded on the exchange in continuous trading.
The performance of an index fund generally matches that of the benchmark index. Dividends are paid to the investor, and the administration costs of an index fund are usually lower than those of an ordinary mutual fund. One advantage of index funds is that they provide for greater diversification of risk than investors can achieve by purchasing individual stocks. Unlike index certificates, index funds do not have a maturity period, and thus there is no risk to the issuer.
Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at redaktion@deutsche-boerse.com. We will then include the term if possible.