An investment strategy whereby the manager replicates an index in order to generate a rate of return in line with the particular index. The manager has no discretion over stock selection within the index. If it is a multi-asset portfolio, the asset proportions are prescribed within the mandate.

An investment strategy requiring little effort by investing in an index fund simply to stay even with the overall market.

Investing in a mutual fund that replicates a market index, such as the S&P 500 Index, assuring investment performance is no worse or better than the market as a whole.

Putting money into a profitable business opportunity that is deemed passive by the IRS and thus benefits from tax deductions.