Index Funds

As passive investing grows, new investors must choose between low-cost index funds and the higher-fee promise of active management

The decision to invest in these funds should depend on how much control you want over market cap allocations

Index funds' AUM grows at a 5-year CAGR of 74.1%

Lower growth in passive fund AUMs vis-a-vis Nifty IT indicate about Rs 280 cr outflow

Check the underlying index and concentration, and invest for at least five years

While active smallcap funds have traditionally outperformed benchmarks, passive and smart-beta options offer lower costs and diversified exposure. The choice depends on investor preference and convict

Curb on number of smart-beta schemes also likely; move aimed at curbing proliferation in segment

Check the track record of the factor combination, tracking error and expense ratio before investing

Equity ETFs and index funds attract record Rs 30,235 crore inflows in March, driven by dip buying and year-end institutional allocations amid market volatility

The fund is designed to provide steady compounding over the long term and predominantly focuses on defensive, large-cap, and mid-cap stocks

Experts say investors should not exit smart-beta funds due to short-term underperformance as factor strategies are cyclical and tend to recover

Zerodha Fund House has launched the Zerodha Nifty 50 ETF and Zerodha Nifty 50 Index Fund, open-ended schemes tracking the Nifty 50 Index-TRI

Bandhan BSE India Sector Leaders Index Fund provides investors with exclusive access to leading companies across various economic sectors

JioBlackRock, a JV between Jio Financial and BlackRock, opens NFO for 5 index funds from August 5-12, offering low-cost, digital-first investment options across major platforms

The BSE 500 Momentum Index Fund is an open-ended scheme replicating the BSE 500 Momentum 50 Total Return Index

Remember that such funds may correct more than a frontline index during a market correction

EW index-based funds can be more volatile due to exposure to smaller companies

The investment objective of the Angel One Nifty 50 Index Fund is to replicate the Nifty 50 Index to provide returns before expenses that track the total return of the Nifty 50 Index

The New Fund Offer (NFO) for both funds will open for subscription on April 16, 2025 and close on April 30, 2025

As per a circular issued on Friday, any breaches of existing limits will not attract penalties - for now - following concerns raised by industry stakeholders