Index tracker fund are types of investment funds, which are operated and managed by following a specific index like stock market index. These types of fund are very low cost and easy to operate for the average investors. These types of funds or shares are fixed and strictly managed by the indexes. Index tracker funds are on e of the most important and feasible funds for any investor. It offers good prospect for serious investors.
Index tracker funds are mostly favored and liked by the investors who are not active and who want to avoid high level of investment in the funds(REDHEAD, Keith, 2008). They also can’t afford charges of stock market analysts and experts. Index tracker funds are most common and popular among investors operating in the equity market, where whole investment strategy is managed through indexes.
Nowadays various types of market indices are working and operating successfully all over the world. These indexes provide very important guidance to the investors about their future investment strategy. These type investment strategy is also becoming common and popular among bond and commodity investors, which are successful managing their investment funds through these indexes