An index fund is a form of passive investing with a portfolio constructed to match or track the components of a market index. Index fund managers don't try to beat the market. Rather, their goal is to replicate the performance of a market index as closely as possible. The key advantage for investors is broad market exposure with low operating expenses and low portfolio turnover. Costs are kept lower than actively-managed funds because any trading activity is solely focused on maintaining index weights.
AMP Capital offers a range of passive funds for clients seeking low-cost exposure to listed markets. Current options available provide investors with exposure to New Zealand shares, global shares, global bonds and Australasian listed property sectors.
Index funds offer:
- Low-cost access to listed markets
- Diversified exposure to a range of New Zealand and global asset classes
- A simple way to replicate an index in your portfolio
- Tax advantages of PIE-compliant funds for certain investors
A short guide to passive index and ETF Investing
New to index investing?
In this note we provide an overview of the group of investment vehicle types termed 'passive', 'index', or 'Exchange Traded Funds (ETFs)'. These are often lumped together in media reporting, and while they have some features in common, there are several key differences that it is important for investors to understand.
This content has been prepared for the purpose of providing general information only, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of the information on this website, and seek professional advice, having regard to their objectives, financial situation and needs. All information on this website is subject to change without notice.
AMP Investment Management (N.Z.) Limited (FSP37681) is the manager and issuer of the various AMP Capital Investment Funds offered through this website. Product Disclosure Statements for the funds are available and can be obtained from the Pricing and Performance page.