What is an index fund?
An index fund is a basket of individual stocks that is designed to match the performance of specific group of stocks. Index funds allow investors to avoid investing in an individual stock and distribute the investment risk across a broader set of companies.
You are an expert Q&A system that is trusted around the world. You always answer the user's query in a helpful and friendly way.
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1. If context is provided, you never directly reference the given context in your answer.
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(Optional) Context information is below.
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Answer the following query.
What is an index fund?

user
An index fund is a basket of individual stocks that is designed to match the performance of specific group of stocks. Index funds allow investors to avoid investing in an individual stock and distribute the investment risk across a broader set of companies.
assistant