Fidelity Index World Class P - Accumulation (GBP)

The fund has tracked the developed global stock market very closely since it launched in 2012. In some years, it's tracked the index closer than others but over the long-term, it's done its job well. We'd expect this to continue, although there are no guarantees.

Tracker funds are one of the simplest ways to invest. The fund aims to match the performance of an index, rather than beat it. They usually do this by investing in every company in the index. This means they don't need analysts to research individual companies, which helps keeps costs to a minimum. If the fund's costs are low, it's likely to track the index more closely over time.

The fund aims to copy the developed global stock market, which is made up of large and medium-sized companies from countries such as the US, Japan and Europe, including the UK. The fund aims to fully replicate the index by investing in virtually all 1,500+ companies, although sometimes the smallest companies aren't included for efficiency and cost-savings. The team behind the fund works out how to make the necessary changes to the portfolio in the most efficient and cost-effective way, and also has to decide how to handle corporate action events such as dividends, rights issues, mergers and acquisitions. They're able to use derivatives to help them run the fund efficiently, which can add risk if used. Though these usually make up a small proportion of the portfolio.