A style of investment management that seeks to attain performance equal to the market or returns. In pure index funds, no judgements are made about future market movements, although more sophisticated managers usually offer tilted portfolios. (Opposite of Active Management).
Fund managers do not attempt to beat the market. Instead, they try to mirror the performance of a selected market index such as the FTSE 100.
Management strategy to buy a well diversified portfolio to represent a broad-based market index without attempting to search out mispriced securities