Tracker Fund

A tracker fund is a kind of investment fund that tracks one of the major stockmarket indices (eg FTSE-100). The fund invests in the same stocks and the same proportions as those reflected in the tracked index.

The fund spreads risk across a larger range of stocks, but the returns are likely to be lower. If the stockmarkets rise, your investment will gain in value - but if there's a market downturn, you may lose money.

Tracker funds are suitable for long term, medium-risk investment, and as such are a good candidate for an ISA


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