Investors looking at market-linked returns, reduce the chances of underperformance and not wanting fund manager’s involvement can consider index funds. Index funds with low tracking error and low expense ratio are preferred investment options
Right now, only Edelweiss MF has a scheme based on the Nifty LargeMidcap 250 index. Soon, Zerodha Mutual Fund will launch two schemes on this index. The index provides an interesting proposition, but you must understand what it is made of, before buying.
The first step, of course, is to prepare a budget. Much like budgeting the household expenditure, women can start off with a list of goals they would want to achieve, their investment tenure, and their risk appetite.
After allocating for regular expenditures, investments and emergency funds, it is significant that a single mother also saves for her retirement and future financial goals.
Although Index mutual funds and Exchange traded funds looks similar but they in real term they differ in various aspect. Financial expert Kripananda Chidambaram explains each instrument and its working meticulously. Read this space to know which one between the two suits you the best.