Feb. 19, 2021, 4:29 p.m.
(1)As the name suggests, an Index Mutual Fund invest in stocks of the companies listed on that particular index in stock market .
(2)These funds are passively managed funds means they invest in same stock that are present on that particular index whether sensex or nifty or any other index in same proportion and does not change portfolio composition.
(3)Major Attraction for Index Funds is that they have low expense ratio since they are passively managed funds and there is no need to create any strategy or research.
(4)Taxability - Both Capital Gain and Dividend received are taxable.
(5)An Investor can expect over 10% - 12% return over a period of 7 years.
(6)Low Risk compared to Actively Managed funds.
(1)As the name suggests, an Index Mutual Fund invest in stocks of the companies listed on that particular index in stock market .
(2)These funds are passively managed funds means they invest in same stock that are present on that particular index whether sensex or nifty or any other index in same proportion and does not change portfolio composition.
(3)Major Attraction for Index Funds is that they have low expense ratio since they are passively managed funds and there is no need to create any strategy or research.
(4)Taxability - Both Capital Gain and Dividend received are taxable.
(5)An Investor can expect over 10% - 12% return over a period of 7 years.
(6)Low Risk compared to Actively Managed funds.
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