An investment strategy whereby a mutual fund doesn’t overtly declare that it operates as an index fund. The fund manager buys shares in the major companies (large caps) in a given index in a different or identical proportion as the index. To do this, the fund manager must mimic the index, taking into account each specific sector or industry, and the weights of the securities comprising each section. However, this indexing requires more management efforts than just passively investing into an index fund. The portion of the investments comprising the large cap shares has almost the same risk-return profile as the index but for higher fees than those an active manager receives.