Thursday, 4 December 2025

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.


πŸ“˜ 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.


πŸ” Top Indexes in India

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

πŸ“ˆ Best Indian Index Funds

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

πŸ’‘ 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

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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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 way...