How to invest in Index fund
Index fund is a passive fund now you all would have a question that what is different between Active fund and passive fund.
ACTIVE FUNDS - In this funds a fund manager keep a deep eye on company and invest there costumer money in that. Because a highly experienced fund manager takes 2% of the investment keep them in his notice.
PASSIVE FUNDS - One of the most common example of passive funds is Index fund.
In this the fund you money is generally distributed and invested in top 50 company of the market so it's cost is also less only 0.10% of the investment per invester.
Index fund money is directly invested in 4 places.
1) HDFC BANK -10. 67%
2) RLI - 9.98%
3) INFORSYS - 6.04%
4) OTHERS -73. 311%
Index fund is firstly started by "Mr Jhon C Bogle" .
Warren Buffett also suggest people's to invest in Index fund which he had written in his news latter.
MANY OF YOU WOULD HAVE QUESTION THAT HOW TO INVEST IN INDEX FUND?
This can be done in two ways first with "ETF" and second was "Normal form".
1) ETF ( Exchange Traded Funds).
Some of the Examples are
• Reliance sensex ETF.
• HDFC Sensex ETF.
• HDFC Nifty 50 ETF.
Before investing in index fund you should must have a Demat Account.
Some example of Normal Form
• SBI Nifty Index Fund.
• ICICI Prudential Nifty Index fund.
• HDFC Index Fund Nifty 50.
Here you can invest as same as you invest in Mutual fund's. You can buy funds from Groww, KUVERA, PAYTM MONEY or direct from AMC ( Asset Management Company).
In EFT Index Funds you cannot do SIP but in Normal Index fund you can.
If you want to gain more profit in index funds so whenever the market is down invest your more money on it please don't leave market because if market is gone down then it will definitely go high after some time.
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