Index Funds

'I was paying over 2 percent in fees. They sold me an annuity better suited for people in their 50s. I was 26,' Tess Waresmith said, recalling her experience with a financial advisor during her early days as an investor about a decade ago.

This mid-cap index shines as active funds struggle to outperform

The Nifty Midcap 150 is fast becoming a preferred index for passive funds, as actively managed mid-cap funds, despite strong individual performances, have struggled to beat their benchmark indices. The Nifty Midcap 150 index has outperformed the Nifty Smallcap 250 and the Nifty 50 in most timeframes.

Are index funds truly diversified when top sectors dominate?

Index funds are considered diversified as they include multiple stocks and sectors. However, when certain sectors, like IT in the US or financial services in India, dominate the index, their weight significantly skews diversification. For better diversification, consider Equal Weighted or Equal Risk Indexes

Retail investors drive 12x growth in index fund folios, Zerodha Fund House study finds

According to the report, total retail folios in index funds increased from 4.95 lakhs in March 2020 to 59.37 lakhs in December 2023.

Why you should keep an eye on liquidity, price deviation and tracking error while investing in ETFs

Exchange Traded Funds are superior in structure as they can mimic their benchmark indices more closely than the other passive variants -index funds. With more than 200 ETFs available in the market, it is important for investors to choose the right ETFs for their portfolio to achieve their financial goals

Which equity fund categories should you invest in?

There are close to 40 mutual fund categories, but you must not invest in all of them. Even the 12 equity categories are too much for any single investor. The variety is there to suit different taste palettes. You must choose your category depending on what you want your money to do.

Radhika Gupta of Edelweiss MF says her son began investing at the age of 6 months

Radhika Gupta began investing in equities for her son when he was just six-months-old.

Craze for index funds distorting market dynamics; passive investing no free lunch: Dhirendra Kumar

Dhirendra Kumar, Chief Executive Officer, Value Research says massive inflows into index funds were creating a kind of self-fulfilling prophecy where the inflows are driving the indexes higher, which in turn is attracting more inflows.

Edelweiss MF to merge ETF-Nifty Bank with Nifty Largemidcap 250 Index Fund; focus on index funds

ENB is an open-ended scheme tracking Nifty Bank Index and ELM250 is an open-ended equity scheme replicating Nifty LargeMidcap 250 Index managing assets worth Rs 2 crore and Rs 50 crore respectively as on June 30, 2023. The record date for the merger is August 7, 2023.

UTI Nifty 50 Equal Weight Index Fund NFO: Should you invest?

The New Fund Offer of UTI Mutual Fund’s UTI Nifty 50 Equal Weight Index Fund (UNE50) will close on June 5 and will reopen on June 9, 2023, for continuous subscription. Should this fund make it to your portfolio?

Passive investing gathers steam but retail investors get a meagre share

The inflows are predominantly from corporates, the Employees' Provident Fund Organisation, and high networth individuals.

Why stock holdings are likely to get concentrated going forward

With investors increasingly putting their money in index funds, the difference between the performance of the stocks in the index and those outside it will continue to widen

Index funds saw max. inflows in FY22-23, 83 percent of which was into target maturity funds

While it’s getting tougher for actively-managed funds, especially large-cap funds, to outperform their benchmarks, passively-managed equity funds have been slow to catch up. The real winner in this category is the Target Maturity Funds. But an encore in FY23-24 seems unlikely, though.

Edelweiss CEO Radhika Gupta has an index fund for her baby. Here's why

Radhika Gupta added that her own portfolio is 100 percent active funds.

Should you go passive in the mid- and small-cap fund space just like in large-caps?

The choice between active and passively managed funds primarily boils down to one thing -- whether actively managed funds can beat their benchmarks and give additional risk-adjusted returns to investors.

Index funds that bet on alpha, with low volatility… And stocks they love to hold

Nifty Alpha Low-Volatility 30 Index selects stocks from NIFTY 100 and NIFTY Midcap 50 that delivered notable return in long run while exhibiting low volatility

Number of passive funds tracking Nifty indices crosses 200

Currently there are 110 ETFs and 91 index funds tracking 72 unique Nifty indices.

Nithin Kamath advises young investors to follow this plan, reduce market risks

Nikhil Kamath suggested an investment combination which can protect young investors from getting discouraged from the ups and downs in the market.

35 smart-beta funds: How to choose the one that works for you?

Smart-beta funds add a layer of active fund management over passive market indices. But just like thematic funds, one smart-beta can be quite different from another.

Prevailing market conditions strengthen the case for Equity Index Funds

Index funds are a category of mutual funds where the fund simply mimics an underlying benchmark index that it is tracking.

Personal Finance | MFs use smart beta strategies to up returns in index funds

Mutual funds are tweaking index-based investment products to offer investors the lure of higher returns within the realm of passive investing. What’s in it for the retail investor? 

After a 3-month lull; it's raining mutual fund NFOs in July

The new funds have been launched across the board - actively managed equity funds, debt, index funds and exchange-traded funds (ETFs).

What to look for when investing in index funds

The crux of index investing lies in understanding the underlying characteristics, and how closely the index-based fund is mimicking the index 

Here's how to build a passive-only portfolio using Index Funds and ETFs

Index funds and ETFs both are good options for passive investing. Although ETFs have lower expense ratios than index funds, at times, lack of liquidity can lead to poor pricing of units.