Pure Index Fund

Pure Index Fund When your portfolio is managed to the point where it perfectly matches how the overall market is performing, it is called a pure index fund. Since this is an actively managed fund, it is more expensive to manage, but the result could end up being better if it is managed properly. Nothing is automatic with this type of portfolio, as a portfolio manager is always involved with the decision making process. This type of portfolio makes it very difficult to miss any problems, but it is really only worth it for those who are investing large quantities of money frequently. Otherwise, the cost of management would be too great.