Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, recently took to X (formerly Twitter) offering her suggestion to investors overwhelmed by the variety of index fund options available in the market.
The post which has gained significant traction, was a response to a light-hearted tweet by an investor named Mahesh, who joked about the sheer number of index fund choices.
In a post on X, Radhika advised picking the "Large and Midcap 250 Index" as the sole fund to consider for those looking to simplify their investments.
She referred to the Large and Midcap 250 Index Fund as her choice for investors seeking a broad coverage of the Indian economy. "Covers the broad Indian economy with reasonable allocation to large and midcaps," she wrote, explaining the fund’s balanced exposure to both large and mid-sized companies.
She had tweeted in response to an earlier tweet which listed several types, including popular options like the Nifty 50 and Nifty 500, along with equal-weighted, market cap-based, factor-based, and thematic funds.
The Nifty LargeMidcap 250 reflects the performance of a portfolio of 100 large cap and 150 mid cap companies listed on NSE, represented through the Nifty 100 and the Nifty Midcap 150 index respectively.
The aggregate weight of large cap stocks and mid cap stocks is 50 percent each and are reset on a quarterly basis. The Index is reconstituted on a semi-annual basis along with Nifty 100 and Nifty Midcap 150 index.
As more investors look towards passive investing strategies, index funds are increasingly popular for their cost-effectiveness and market-wide exposure.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
