Investing Guide #87: What Are Index Funds & Why They're Perfect for Lazy Investors

 

Don’t Want to Research Stocks? Let the Market Do the Work With Index Funds

Index funds are one of the easiest, safest, and smartest ways to invest for the long term — even Warren Buffett recommends them.

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📘 What Is an Index Fund?

It’s a mutual fund that copies a market index like Nifty 50 or Sensex.

Instead of active management, it passively tracks the index. No frequent buying/selling = low cost.

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🔍 Top Indexes in India

• Nifty 50 (Top 50 companies)
• Sensex (Top 30 companies)
• Nifty Next 50
• Nifty Bank

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📈 Best Indian Index Funds

• UTI Nifty 50 Index Fund
• HDFC Index Fund – Sensex
• ICICI Prudential Nifty Next 50

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💡 Why It Works

• Low fees (0.1%–0.3%)
• Proven long-term returns (10–14%)
• Ideal for SIPs
• Beats most actively managed funds over time

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✅ Conclusion

Don’t overthink investing. Choose an index fund, start a monthly SIP, and let time and compounding make you rich.

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Budgeting Guide #86: The 50/30/20 Rule of Budgeting — Simple & Powerful for Every Indian

 

Want a Foolproof Budgeting Formula? Try This Simple 3-Part Method That Works for Everyone

The 50/30/20 rule is a tried-and-tested budgeting technique that’s perfect for Indian salaried individuals and beginners alike.

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📊 What is the 50/30/20 Rule?

Divide your income into:

• 50% Needs – Rent, groceries, bills
• 30% Wants – Shopping, travel, entertainment
• 20% Savings – SIPs, emergency fund, investments

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🧾 How to Apply It (Example with ₹30,000 Salary)

• ₹15,000 → Needs
• ₹9,000 → Wants
• ₹6,000 → Savings/Investments

Even if your salary is low, start with any ratio that fits. The idea is structure + consistency.

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✅ Benefits

• No overthinking or micro-tracking
• Builds habit of saving automatically
• Keeps lifestyle inflation in check

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✅ Conclusion

This budgeting rule is like a fitness plan for your money — easy, flexible, and sustainable for Indian households and individuals.

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Got a Pre-Approved Loan SMS? Here's What It Means (And If You Should Click Yes)

Banks love offering pre-approved personal loans — but before you say yes, understand the full picture. It’s quick, but it’s not always right.

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📩 What is a Pre-Approved Loan?

It’s a loan offered to you without application based on:

• Good CIBIL score
• Existing bank relationship
• Income history

Usually personal loan (₹50k–₹5L) — disbursed in 2–24 hours.

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✅ Benefits

• No paperwork
• Instant approval
• Lower interest (sometimes)
• Great in emergencies

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⚠️ Risks

• Temptation to overspend
• Pre-approval ≠ free money
• May hurt CIBIL if repaid late
• May have hidden processing fees

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🧠 When to Take It

✅ Emergency medical expense
✅ Business opportunity
❌ Shopping or unnecessary luxury

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✅ Conclusion

Pre-approved doesn’t mean pre-decided. Think logically — not emotionally — and use only when needed.

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