5 Key Roles for Index Funds in Your Portfolio

Mutual Funds

There has been a lot of change in the dynamics of index funds in India, with mutual fund houses gaining popularity through awareness initiatives and innovative benchmark schemes.

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Development of Index Fund

Index funds mirror a specific stock market index, mimicking its portfolio structure and weightings. Their goal is to match the returns of the benchmark rather than outperform the market.

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Fundamental Concept

Index funds provide transparency because the investor knows the exact composition of the underlying assets. This clarity promotes better understanding and tracking of the portfolio, thereby increasing investor confidence.

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Transparency 

Amid market volatility, the stability, inactivity, and low-cost advantages of index funds make them an ideal choice for beginners, providing a stable introduction to investing.

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Stability amid Instability

Index funds follow automated and regulated investment strategies, minimizing human or emotional biases. This adherence of asset allocation to the benchmark reduces the need for frequent adjustments based on market fluctuations.

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Automatic Rebalancing

Index funds follow automated and regulated investment strategies, minimizing human or emotional biases. This adherence of asset allocation to the benchmark reduces the need for frequent adjustments based on market fluctuations.

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Diversity

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