For an indexed portfolio, the fund manager will typically attempt to replicate the composition of the particular index exactly.

Question

Quizplus · Accepted Answer

The aim of an indexed portfolio is to mimic the performance of a specific benchmark index. To achieve this, the fund manager will usually try to replicate the index composition as closely as possible. This involves buying the same securities in the same proportions as they are weighted in the index, so as to provide investors with similar returns to the benchmark.

For an Indexed Portfolio, the Fund Manager Will Typically Attempt