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Index funds are relatively more popular compared to traditional investment assets, with which you have to let go of certain control over your assets. The simplicity of investing in index funds makes it a very popular choice for investors who prefer a traditional growth of their wealth. Here is everything you need to know about them.

What are index funds?

In India, there are two major indices – Sensex and Nifty 50. Out of these two, Nifty 50 is more popular and has more participation in terms of the financial big houses constantly pouring their money into it.

Investing in index funds

When an investor chooses to buy an index security, he/she buys the same set of stocks under the index, in the same proportion.

There are three major types of index funds that you can choose to invest in – Index ETF and Index Mutual Funds and directly purchasing the futures of the indices.

 

Advantages of investing in index funds

Historically, indices have only grown year-on-year, with very few years in the last few decades when indices have returned a negative value. With a few good years, indices have returned almost twice as much as traditional bank rates.

Who is it for?

Index funds are for people who understand market movement and how global news impacts that. Investors of index funds are those who do not feel secure with fund managers managing their money.

Member name : Zebu Share and Wealth Managements Pvt Ltd
NSE / BSE / MCX , SEBI Registration No: INZ000174634
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AMFI ARN : 113118
Research Analyst : INH200006044

Head office:
No 127, 1st floor ,PSK Booshanam Mahal ,100 feet Bypass Road, Velachery, Chennai 600 042.
Phone : +91-44 4855 7991

Assist: assist@zebuetrade.com
Investor grievance: grievance@zebuetrade.com
The following advice is issued in the interest of investors:
Safeguard your account from unauthorized transactions. Update your mobile numbers/email IDs with your stock brokers. Get all information related to your transactions directly from the stock exchanges on your mobile phone/email id, at the end of every day. KYC compliance is mandatory when you enter the securities market. It is a one-time exercise done through a SEBI-registered intermediary (stockbroker, depository participant, mutual fund, etc). There is no need to repeat the KYC process when you go to any other intermediary.

You do not have to issue a cheque while subscribing to an IPO. Write your bank account number clearly on the IPO application and sign it, sanctioning your bank to make payments when there is an allotment. Your funds will remain in your bank account in the case of non-allotment.