ACTIVE INDEX FUND

A kind of index fund in which a fund manager depends the initial investment proportions of the fund in accordance to the benchmark index wherein the manager is trying to track, and then continue to supply what he/she trusts to be a higher performing stocks that are not related to the underlying index. The next step of the fund manager will then be actively managing the composition of the specified non-benchmark stocks for the purpose of earning yields that surpasses the benchmark index.