Index fund corner
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| Name of the scheme | 1-year back | Invest now | Fund category | expense ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest now | Equity: Big Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest now | Equity: Big Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest now | Equity: Big 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% |
However, index funds and ETFs differ in many ways.
Let’s take a look at the meaning of index funds and ETF and which is a better option for investment.
What are the exchange-traded funds (ETFs)?
Exchange traded funds or ETF are the investment funds that mainly trade in the intraday stock market and generate returns by the end of the day. They are quite transparent and provide accurate information about their investment allocation to investors. They are also affected by the ups and downs in the stock market, with real -time transactions. This includes industry, bonds, currency, commodity, inverted ETFs and others.
What are index funds?
Index funds are like mutual funds that invest in stock, bonds and commodities. However, they typically align their trading activity with famous indices such as the Nifty 50 or Sensex 100. Investors benefit from investing in low -risk unstable stocks as the index fund ensures that the investment remains in line with the benchmark, regardless of market volatility.
They have the ability to generate high returns and long -term wealth, making them a popular passive investment option among investors.
Which is a better investment option between ETF and index funds?
The index funds and exchange-traded funds (ETFs) are becoming popular among Indian investors. Investors can use a diverse array of securities through index funds and exchange-traded funds (ETFs). However, there are many significant differences between two investment options. Index funds have higher expenditure ratio than exchange-traded funds (ETFs) because mutual funds require more active management.
In addition, the minimum investment amount required to invest in index funds is usually lower than required to invest in exchange-traded funds (ETFs).
ETFs provide more trading flexibility than index funds as they trade like stock on an exchange throughout the trading day.
Index funds are a safe form of investment, while ETFs are good for better development. Compared to ETFs, index funds are usually trading types.
Index funds provide a more convenient method of reinforcement, bringing variety in the risk of investor than ETF funds.
An investor can invest in an index fund through a systematic investment plan (SIP), but it cannot be done for ETF trading. However, the decision to choose between the index funds and the exchange-traded funds (ETF) is completely based on your overall financial strategy, trading preferences and investment goals.
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