Know More About Index Funds

Hemant Rustagi
Chief Executive Officer, Wiseinvest Pvt Ltd.

Index funds are passively managed funds that track an index. When you invest in an index fund, your money gets invested in the companies that make up that particular index, which gives you a more diverse portfolio. Besides, these funds are free from any bias a fund manager may have towards a set of sectors or stocks. Moreover, there are a variety of index funds on offer and that makes it possible for you to choose funds with different combinations of sectors and stocks. The flip side is that you forfeit the chances of outperforming the market.