Beta funds, in simple terms, refer to investment funds that are designed to closely track or mimic the performance of a specific market index. These funds aim to replicate the returns of a particular benchmark, such as the S&P 500, rather than trying to outperform it. The term "beta" in finance signifies the measure of an investment's volatility or risk compared to the overall market. Thus,
beta funds focus on providing investors with similar returns to the chosen index, allowing them to passively invest in a specific market without actively managing their portfolio.
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