What is an index fund?

The S&P/ASX 300 index refers to the top 300 companies listed on the stock exchange by market capitalisation. If CBA represents 8.67% of the S&P/ASX 300 index fund that means for each $100 invested in the index an investor is getting $8.67 worth of CBA shares.




  1. A cost effective way to capture market returns

  2. Broad market/industry exposure

  3. Risk diversification

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