What are Index Funds?
Index funds are financial vehicles that mimic the behaviour of a selected market index, such as S&P BSE-100 or Nifty 50. In concept, they are similar to Exchange Traded Funds (ETFs) or Mutual Funds and are managed by a funds manager. Your portfolio would consist of stocks in the same proportion as the index the fund is attempting to mimic.
Who Should Invest in Index Funds?
Index mutual funds mimic market indices and aim to emulate the same performance as the index; the returns one can generate from index mutual funds thus are fraught with incumbent risks. If your investment objective matches any (or all) of the following points, then index mutual funds are for you. View More
Features of Index Funds
Before searching for potential index funds to invest in, it is important to be aware of the features of this fund. It can help you make an informed decision. Following are some salient features of index funds: View More
Taxability of Index Funds
The best index mutual funds generate decent returns for you depending on the performance of the basal market index. The gains you register from these funds are taxable in the following manner: View More
Risks Involved With Index Funds
No investment in the market is risk-free. An index fund mutual fund is designed to track the performance of a particular market index; it also translates into the fund inheriting the same risks as the selected index. Additionally, there are a few other risks involved with index fund mutual funds: View More
Advantages of Index Mutual Funds
Despite index funds being a passive, static mode of investment, there are several upsides to investing in top index mutual funds: View More