Index Fund For Investing

What Is A Great Index Fund For Investing?

Index funds are also a part of mutual funds whose portfolio is constructed by using the market index as a base. We can even say that the performance of an Index fund is depends on the performance of a particular index. Index fund schemes are managed passively.

Index funds mainly track the performance of a particular index. The funds which are actively managed they are meant to outperform the market but index funds are not performing like that. If an investor is planning to invest in index funds, then he/she should pay attention to the tracking error of the fund.

The top 5 Index Funds

Reliance index fund- Sensex Plan

The primary investment objective of this scheme is to make a copy of the composition of the Sensex, and the motive to do so is to generate returns that are commensurate with the Sensex mainly. The investment in this scheme is growing high every month of 2018-19. And if we will compare the data from 2010 to 2018, the returns are increasing at a perfect pace.

ICICI Mutual Fund Index Fund Scheme

The primary objective investment objective of the fund is to generate returns commensurate with the particular of the index either Nifty/Sensex and while planning to invest, must keep an eye on the tracking errors. It was launched on 14th Nov 2002. It is a moderately high-risk fund and since its launch, it has given the return of 13%.

ICICI Prudential Nifty Index Fund

ICICI Prudential Nifty Index Fund is an open-ended index. The objective of the scheme is to invest in the entities whose securities are included in Nifty and Sensex and subject to tracking error just to achieve the return of the high index carefully as much as possible.

Franklin India Index Fund Nifty Plan

The primary investment objective of the scheme is to invest in those companies who securities are involved in the Nifty and subject to tracking error, try to attain results equivalent to the Nifty 50 under NSE Nifty Plan. It was launched on 4rthAugust, 2000. Since its launch, it has given the returns of 12.1%. It is moderately high-risk fund.

SBI Nifty Index Fund

This scheme has adopted a strategy of passive investment. The scheme invests in stocks containing the Nifty 50 index in the same proportion as in the index and the objective is to achieve the return equivalent to the Total Returns Index of Nifty 50 Index. The Total Return Index is an index which reflects the return.

It was launched in 17th Jan 2002. Since its launch, the return it has given is 14.1%.

Leave a Reply