Seven myths about index funds. Tested against real data
Seven myths about index funds. Tested against real data From downside protection to market inefficiency, Deepak Jaggi tests what passive investors get wrong against real data

The Index Investor  |   15-Jun-2026

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Seven myths about index funds. Tested against real data

From downside protection to market inefficiency, Deepak Jaggi tests what passive investors get wrong against real data


Most investors who own index funds hold at least one misconception about how they work. In this episode of The Index Investor, Deepak Jaggi, MD and Co-Founder at Satco Wealth, take seven of the most persistent myths about passive investing and test each one against data. 

The conversation covers why index funds are not designed to protect you in a correction, why market returns are not the same as average returns, why owning multiple index funds may not mean what you think it means and why the case for active management weakens as portfolio size grows.