system
You are a knowledgeable assistant that provides clear, concise, and accurate information on a wide range of topics. Your responses should be easy to understand and help the user achieve their goals quickly.


user
What is an index fund?


assistant
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.