HOW TO START INVESTING SAFELY IN INDIA?

    INDEX FUNDS

In this article, you are going to learn about:-

-index funds without going into complexities.

If you know about mutual funds then it so obvious that you should have been heard about "Index Funds" as well. In India, there are so many Index Funds running and performing very well.

If you want to know about mutual funds then refer to my previous article what are mutual funds??

An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a financial market index. An index mutual fund is said to provide broad market exposure, low operating expenses, and low portfolio turnover. For Example, UTI Nifty Index Funds-Regular and Direct Growth.

  UTI / HDFC/ IDFC/MANY MORE...

One of the central ideas of investing in all categories of mutual funds is to make investing easier and more accessible to the average or beginning investor. But choosing the best mutual funds can be time-consuming.

       LESS TIME TAKING

Investing in index funds minimizes the time and energy spent on researching funds  and managing one's portfolio, freeing up time for one's priorities in life, which the money you've invested is intended to finance in the first place.

            NO RISK

While actively managed funds may perform well in the short-term, index funds have higher returns over longer periods of time.

Index funds are passively managed, therefore the cost expressed as an expense ratio of managing the fund is extremely low compared to funds that are actively engaged in beating the market averages.

  LEAST EXPENSE RATIO

Many index funds have the expense ratios below 0.2%, whereas the average actively managed mutual fund can have expenses of around 1.5% or higher. Now, this difference of 1.30% may not be looking beneficial but when we talk in the long term it is going to make a huge difference in the final amount. 

THANKS!

HRIDYANSH DAVE

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