Index Funds

Two friends illustrate the difference between ETFs and mutual funds. While mutual funds are actively managed, ETFs offer a fixed, passive investment approach.

Index funds are gaining popularity among retail investors over the last five years. Here's why they are choosing index funds over ETFs despite the latter being a cheaper option.

Choosing a mutual fund is easy, but selecting the right one involves understanding index versus active funds. Index funds replicate market performance passively, while active funds aim to outperform benchmarks through strategic stock selection.

Nifty Auto Index is a sectoral stock market index that tracks the performance of India's automobile industry by comprising 15 actively traded and NSE-listed companies. One of the simplest ways to get exposure to the Nifty Auto Index is through index funds and ETFs.

UTI Nifty 50 Index Fund passively tracks the Nifty 50 Index, whereas the ICICI Prudential Large Cap Fund is actively managed with the objective of outperforming its benchmark through stock selection.

The Nifty India Internet Index tracks the performance of companies that primarily operate through digital and online platforms. The index currently includes 27 stocks, offering exposure to a diverse range of internet-driven businesses.

Often viewed as a secondary large-cap benchmark, the Nifty Next 50 has outperformed the Nifty 50 across 3-, 5-, 7- and 10-year rolling periods. The data also shows it occupies a distinct position between traditional large-caps and mid-caps on the risk-return spectrum.

The Nifty 50's decade-long winning streak is threatened, down 11% this year due to rising crude oil prices amid Middle East tensions. Analysts warn of potential declines in corporate earnings and investor sentiment, but some remain optimistic about India's long-term growth.