Three emotional arguments against index funds that don’t make sense
Index funds provide a straightforward way to diversify and minimize investment cost
Rationality dictates that we use index funds instead of active mutual funds (MFs) in India. There are no robust rational arguments in favour of active MFs. Hence, beneficiaries of active MFs are forced to either use statistically incorrect arguments or emotional arguments. This article recaps the statistically incorrect arguments and refutes three emotional arguments.