How does an index fund manage investors buying/selling the fund
In: Economics
Index funds are managed by portfolio managers (PM). These PMs buy and sell stocks to replicate the performance of an index (ex. S&P500).
These index funds have some mandate that states that whoever is managing these index funds must track as close as possible to the index they are tracking.
Index funds do not manage investors. Think of it as a product that an investor can purchase. These products are usually sold through brokers or banks.
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