WHAT ARE INDEX FUNDS? 5 KEY FEATURES

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UNDERSTANDING INDEX FUNDS

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

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PASSIVE APPROACH

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

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MATCHING MARKETS

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

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COST EFFECTIVE

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

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DIVERSIFICATION

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

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GROWTH POTENTIAL

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

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