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There are many funds that are based on the value and appreciation of an index in the market. Examples of what these stock mutual funds focus in on could be the S&P 100, S&P 500, NASDAQ or other broad based groups.
Broad based funds perform with the market a s a whole. Index funds could also be based on a narrow based side of the market. A narrow based index concentrates on a specific sector of the market, either in industry or geographical location.
These areas could include only Telecommunications, South American Companies, Asian Energy groups of stock, etc.
These index investments tend to move with the market, as the money is invested farily equally into the stock market of whichever group or objective makes up that fund strategy.
Copyright  2006 American Investment Training, Inc.
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