Investing in indices is a passive investment strategy that seeks to replicate the performance of a benchmark index.
Indexing offers more diversification as well as lower costs and fees than actively managed strategies.
Indexing seeks to match the risk and return of the entire market based on the theory that in the long run the market will outperform any stock selection tool.
Fully investing in an index involves buying all index components with a given portfolio weight, while less intensive strategies involve holding only the largest index weight or a selection of important components.
Exception 3(c)(7) pertains to a section of the Investment Company Act of the 1940s allowing qualifying private funds to be exempt from certain SEC rules.
3C1 refers to the part of the Investment Company Act of 1940 that exempts certain private equity firms from regulation.
– A firm to be defined as an investment company must comply with certain regulatory and reporting requirements set by the SEC.
Attribution analysis is an evaluation tool used to explain and analyze the performance of a portfolio (or portfolio manager), especially when compared to a certain benchmark.
A growth fund is a mutual fund or exchange-traded fund (ETF) that includes companies that aim to grow revenue or earnings faster than competitors in the industry or the market as a whole.