Investing Guide #62: What are Index Funds & Why Indians Are Loving Them Now

 

Want Stress-Free Investing? Index Funds Might Be the Only Thing You Need

Warren Buffett recommends it. SEBI promotes it. And Indian investors are loving it too. Here’s why Index Funds are the best passive investment tool.

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📘 What Are Index Funds?

An index fund simply copies an index like:

• Nifty 50
• Sensex
• Nifty Next 50
  It doesn’t try to beat the market — it just mirrors it.

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📊 Why Index Funds Are Safe for Beginners

• Low cost (no fund manager actively trading)
• Market-linked performance
• Consistent growth over time
• Great for SIPs (₹100–₹500/month also works)

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🧾 Best Index Funds in India

• Nippon India Nifty 50
• HDFC Index Fund – Sensex Plan
• ICICI Prudential Nifty Next 50 Index Fund

Search them on your favorite broker app and start SIP in 5 mins.

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📉 Risk Level

• Market-linked, so returns fluctuate
• No active management = no downside protection
• But long-term (5+ yrs), they beat most other funds

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✅ Conclusion

If you want zero headache, zero monitoring — just auto-SIP in index funds and let the market work for you.

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