What is an index fund?

We outline everything you need to know about index funds, from what they are and how to buy them, to the things to consider before you do so.

Stock index display in Tokyo
Index funds copy the composition of an index, such as the FTSE 100 or the Nasdaq
(Image credit: © James Matsumoto / Getty Images)

Index and tracker funds are a multi-trillion dollar market, letting investors replicate the performance of a particular market or asset class - but how do they work?

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Nic studied for a BA in journalism at Cardiff University, and has an MA in magazine journalism from City University. She has previously worked for MoneyWeek.