Index Fund Corner
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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
It automatically invests in the same companies as the index, instead of fund managers picking stocks manually. This means if the index goes up, your investment increases and if it goes down, your investment value declines.
What is an index fund?
They are passively managed funds, meaning the fund manager doesn’t alter the composition of the portfolio and instead makes investments in the same securities as included in the underlying index in the same proportion. These funds aim to provide results similar to those of the index they follow.
These funds are tailored to meet the investment goals of specific investors. They can be customised to include or exclude certain sectors or adhere to ESG standards.
Suppose you invest in the Nifty 50 index fund, so all your funds will be spread across all 50 companies in the Nifty 50. If the Nifty 50 index rises by 10%, then your investment will also increase by approximately 10%. Similarly, if the Nifty 50 index falls by 10%, the investment value will also decline.
The types of index funds are broad market index funds, sector-based index funds, equal weight index funds, market-capitalisation-based index funds, debt index funds, international index funds, and strategy index funds.
Who should invest in index funds?
The index fund is ideal for people who want a simple and hassle-free way to invest in the stock market.
If you are a beginner and new to investing, this is an ideal platform for you to invest. This works well for people who don’t know how to pick stocks or index funds. You will not have to track the market daily as the fund automatically invests in top companies over time.
People who are looking for low-cost investments can also invest in index funds. Those who want to invest in multiple companies can also opt for index funds. Instead of buying individual stocks, which can be risky, an index fund invests in many companies at once, reducing the risk.
(Edited by : Sudarsanan Mani)
