NOTES TO FINANCIAL STATEMENTS
MERRILL LYNCH AGGREGATE BOND INDEX FUND
1. Significant Accounting Policies:
Merrill Lynch Aggregate Bond Index Fund (the "Fund") is part of Merrill Lynch Index Funds, Inc. (the
"Corporation"). The Fund is registered under the Investment Company Act of 1940 as a non-diversified mutual
fund. The Fund seeks to achieve its investment objective by investing all of its assets in the Merrill Lynch
Aggregate Bond Index Series (the "Series") of the Merrill Lynch Index Trust, which has the same investment
objective as the Fund. The value of the Fund's investment in the Series reflects the Fund's proportionate interest
in the net assets of the Series. The performance of the Fund is directly affected by the performance of the Series.
The financial statements of the Series, including the Schedule of Investments, are included elsewhere in this report
and should be read in conjunction with the Fund's financial statements. The Fund's financial statements are
prepared in accordance with generally accepted accounting principles which may require the use of management
accruals and estimates. The Fund offers two classes of shares, Class A Shares and Class D Shares. Shares of
Class A and Class D are sold without the imposition of a front-end or deferred sales charge. Both classes of
shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that
Class D Shares bear certain expenses related to the account maintenance of such shares and have exclusive
voting rights with respect to matters relating to its account maintenance expenditures. The following is a summary
of significant accounting policies followed by the Fund.
(a) Valuation of investments--Valuation of securities is discussed in Note 1a of the Series' Notes to Financial
Statements, which is included elsewhere in this report.
(b) Income--The Fund's net investment income consists of the Fund's pro rata share of the net investment income
of the Series, less all actual and