Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Index fund is a mutual fund or ETF designed to replicate the performance of a specific market index such as Nifty 50 or Sensex.
Index funds copy an index — if Nifty rises 10%, the fund aims to rise roughly 10% minus small fees.
Passive management eliminates stock-picking risk relative to the index. Full replication vs sampling affects tracking error. Direct plan index funds among lowest-cost equity exposure vehicles in India.
Investing ₹10,000 monthly in a Nifty 50 index fund provides diversified large-cap exposure at ~0.2–0.5% expense ratio versus 1%+ for many active funds.
Over long periods, many active funds underperform indices after fees. Some active managers outperform consistently, but identifying them ex-ante is hard.
Nifty 50, Nifty Next 50, Nifty Midcap 150, and Sensex are common benchmark choices for index products.
Yes. Most AMCs offer index fund SIPs without demat, making them accessible for systematic investors.