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INDEX FUNDS – A Go Through with Gulaq’s Methodology

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best index funds in india

An Index Fund is one of the mutual funds or exchange-traded funds (ETFs) that are designed to follow preset rules just to make sure that the fund can easily track the components of investments or of a market index. 

Index funds also help in balancing the risk in the portfolio of an investor, as market swings turn out to be less volatile across as index as compared with individual stocks.  

Quick Takeover: 

  • They pool money from different investors to buy bonds, securities or individual stocks to make up a particular market-index. 
  • They are one of the good ways to minimize risk, the reason being they track a market index, which somehow rises in value over the certain time-period. 
  • Index funds are known as a passive investment with low fees as compared by those ‘mutual funds’ that are managed on a daily basis by brokers. They also show better returns.

Factors to Consider Before Investing 

  • Return Factor: Unlike actively managed mutual funds, index funds track the overall performance of the underlying benchmark passively. Although, these funds do not point to beat the benchmark but to replicate the performance. NOTE: Before investing, try to shortlist a fund which has the minimum tracking error; lower the errors, better performance of the fund is going to be. 
  • Risk Tolerance: Not to forget, index funds are less prone to equity-related risks and volatility. They are an amazing option to consider during a market rally if you want to earn better returns. TIP: Having a mix of index funds and actively-managed funds in your portfolio is recommended. 
  • Financial Goals: Being the haven of high risk-high return, these funds are good to go for generating enough wealth for your goals. 
  • Tax on Gains: You earn capital gains when you redeem units of index funds, also the capital gains are taxable (depends on how long you stay invested (holding period)).

Who Should Invest? 

Investing in index funds is solely depends upon the investor preferences and risk appetite. These funds are ideal for those investors who want to avoid risk and get expected returns. These funds do not require much extensive tracking. The goal of the index fund is to track the performance of the benchmark. The fund manager is not expected to implement any style or strategy to generate excess returns over and above the index returns. These funds will give you returns matching the upside that the index sees. So, any retail who doesn’t have much prior knowledge about market operation, then it’s better to start investing in Index fund. 

Total Courtesy: https://www.gulaq.com/best-index-funds-to-invest/  

Top 5 Index Funds with Gulaq 

  • Nippon India Index Fund – Sensex Plan: It is a others mutual fund scheme that was launched by Reliance mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Payal Kaipunjal. Talking about AUM, it is of INR 45 Cr, and, the latest NAV is of 19.63 (dated as of 6th March 2020). The fund growth is rated moderately high risk. Also, the minimum SIP investment is INR 100, and, lumpsum investment is INR 5000. 
  • LIC MF Index Fund SensexIt is others mutual fund scheme that was launched by LIC mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Ramnath Venkateswaran. Talking about AUM, it is of INR 22 Cr, and, the latest NAV is of INR 73.94 (dated as of 6th March 2020). The fund growth is rated moderately high risk. Also, the minimum SIP investment is INR 1000, and, lumpsum investment is INR 5000.  
  • UTI Nifty Index Fund: It is a others mutual fund scheme that was launched by UTI mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Kaushik Basu. Talking about AUM, it is of INR 1900 Cr, and, the latest NAV is of INR 37.62 (dated as of 6th March 2020). The fund growth is rated moderately high risk. Also, the minimum SIP investment is INR 500, and, lumpsum investment is INR 5000.  
  • IDFC Nifty Fund: It is a others mutual fund scheme that was launched by IDFC mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Arpit Kapoor, and Sumit Agrawal. Talking about AUM, it is of INR 190 Cr, and, the latest NAV is of INR 23.53 (dated as of 6th March 2020). The fund growth is rated moderately high risk. Also, the minimum SIP investment is INR 100, and, lumpsum investment is INR 5000.  
  • Nippon India Index Fund- Nifty PlanIt is a others mutual fund scheme that was launched by Reliance mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Payal Kaiupunjal. Talking about AUM, it is of INR 160 Cr, and, the latest NAV is of INR 19.61 (dated as of 6th March 2020). The fund growth is rated moderately high risk. Also, the minimum SIP investment is INR 100, and, minimum lumpsum investment is INR 5000.  

Looking to invest? Hop on to gulaq.com and start investing in direct mutual funds. Furthermore, you can also get in touch: [email protected]

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*Disclaimer: investment in securities market are subject to market risks, read all the related documents carefully before investing

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