What Is Index Mutual Fund..?And Its Benefits
What Is Index Mutual Fund : Index mutual fund is very easy to understand. In the stock market
Those who think they need to invest and do not have time for analysis can invest in this.
What is mutual fund?
- Choosing a mutual fund can be a difficult AND Risk task.
- There are many fund houses. Many people get scared when they see their names. But the index
- Mutual fund is very simple. It is very easy to understand. Moreover.. there is risk in this scheme
What is an index mutual fund?
What Is Index Mutual Fund:The meaning of index mutual fund is in its name. This type of mutual fund.. Like Sensex, Nifty, Bank Nifty Invests in index etc. For example in Nifty 50.. there are stocks of 50 companies. If they keep growing.. Nifty 50 will grow. Those stocks If it falls.. Nifty will fall. Nifty 50 index mutual fund is also the same! In this, stocks of Nifty 50 are Therefore.. Nifty 50 mutual fund also has returns according to Nifty 50 returns.
Index mutual fund managers.. choose an index and gradually invest investors’ money in the stocks in it.Invested. Same in active Mutual Funds.. different to bring good returns to the investors
Types of stocks need to be examined. Right decisions should be taken at the right time. Therefore
In index mutual fund fund.. the work of fund managers is not much..What Is Index Mutual Fund..?And Its Benefits
Who can apply for index mutual fund?
Index mutual for those who want to invest in equity market and don’t have time to analyze stocks
fund is useful. Since the returns will also come in line with the index.. they will be at the expected level..What Is Index Mutual Fund
Index mutual fund: Index mutual fund is very easy to understand. In the stock market
Those who think they need to invest and do not have time for analysis can invest in this.
Index mutual fund in India : Decisions of fund managers are sometimes reversed. Then losses to investors There is a possibility of coming. Since the role of fund managers in index mutual fund is very little.. A fears are necessary No. Therefore, compared to other mutual funds, the scope of risk is less. But.. if you want to get high returns.. you have to take less risk. Hence.. than returns given by experts Index mutual fund may not be useful for those who want to get high returns.
These should be considered.
- Risk-Reward:– If the markets grow.. Indices also grow. Then index mutual fund too increases. But if the markets fall, the indices and the index mutual fund will also fall. Usually something else In funds..if the value of the markets falls..the fund managers with their decisions divert the cash to other stocks.There is a chance. There is no such flexibility in index mutual fund. Hence along with the index Investing in active mutual funds is also very beneficial.
- Expense Ratio:- Fund House manages your investments with a percentage of the returns you get.Takes the whole. That is called expense ratio. Here is the biggest use of this. Fund since the involvement of the manager is less.. the expense ratio is also less in index mutual fund.
- Your goals are important:- This index is for investors who are willing to invest for at least 7 yearsMutual fund can help. In the short term, these types of funds have high fluctuations. 7 years old 10-12 percent returns are likely to come in the period. Hence Index mutual fund is for long term investments What Is Index Mutual Fund..?And Its Benefits
Look at the side.
Tax:- As it is an equity fund, tax has to be paid on the money received through the index mutual fund. Now
If the fund house pays dividends, 10 percent DDT (Dividend Distribution Tax) will be deducted.What Is Index Mutual Fund..?And Its Benefits
