A
Ayushi Arora
Member
Hi,
I am not clear with the following core reading under section 2.4 "Index Tracking" highlighted below:
Passive investment managers are, typically, index-trackers who manage assets without attempting to generate any outperformance from making superior investment decisions. Instead, their objective is to track closely the performance of a specified equity index. This offers the advantages of lower cost and volatility, but with the loss of upside potential and the implicit restriction to countries, markets or sectors where a suitable benchmark exists.
Please help me understand what these lines mean here.
Thanks
I am not clear with the following core reading under section 2.4 "Index Tracking" highlighted below:
Passive investment managers are, typically, index-trackers who manage assets without attempting to generate any outperformance from making superior investment decisions. Instead, their objective is to track closely the performance of a specified equity index. This offers the advantages of lower cost and volatility, but with the loss of upside potential and the implicit restriction to countries, markets or sectors where a suitable benchmark exists.
Please help me understand what these lines mean here.
Thanks