How to choose an index fund?

An index fund is an investment that tracks a market index. Passively managed funds replicating an index have been on investors' radar for some time now. They have become a lucrative option, especially in the large-cap space, as the actively managed funds struggle to deliver superior returns over benchmark. Though one has an option to invest either in an index fund or an Exchange Traded Fund (ETF) for tracking an index, investing through an index fund is a more straightforward route. One needs to have a Demat and a trading account for investing in an ETF. It trades on the stock exchange like any other equity share. On the other hand, one can invest in an index fund exactly the way one invests in other mutual funds. Monthly automated investments through a

This article was originally published on April 13, 2022.