What is an Index Fund?

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I would like to inquire according to the new regulations on the operation and management of securities investment funds, what is an index fund? Thank you.

According to Clause 15, Article 2 of Circular 98/2020/TT-BTC, the content is stipulated as follows:

Index funds are open-ended funds that invest in a portfolio of underlying securities constituting a stock index, in which the stock index is constructed and managed by the Stock Exchange in Vietnam and meets the legal regulations on exchange-traded funds.

Respectfully!

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