closet indexing

closet indexing definition - business

closet indexing

An investment method in which an individual develops a widely diversified portfolio of securities that achieves a performance level nearly identical to that of a broad-based market average, yet claims the performance is the result of active management based on market expertise.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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