WHAT ARE INDEX FUNDS? 5 KEY FEATURES

UNDERSTANDING INDEX FUNDS

Index funds track a market index, like the Nifty 50 or BSE Sensex.

PASSIVE APPROACH

They are passively managed – the fund manager replicates the index instead of handpicking stocks.

MATCHING MARKETS

So, they don’t try to beat the market — just match its returns (subject to tracking error).

COST EFFECTIVE

This translates to lower expense ratios compared to active mutual funds.

DIVERSIFICATION

You invest in all the stocks in the index through a single fund, reducing risk.

GROWTH POTENTIAL

Index funds can be a convenient way to potentially grow wealth over time. Ready to start?