NSE launches 4 Indices | Index Investing

But should you consider index investing?

This might help 👇
1. Lower Costs: Index funds typically have lower expense ratios than actively managed mutual funds, which means that you can invest more of your money where it will do the most good for your portfolio.

2. Tax Efficiency: Since index funds are passively managed, they don’t buy and sell individual securities as frequently as actively managed mutual funds do. This reduces their tax liabilities and increases your after-tax returns over time.

3. Diversification: Investing in index funds is a great way to diversify your portfolio and achieve long-term growth.

4. Simplicity: Index funds are simple, cost-efficient, and transparent investments.

5. Historical Performance: Historically, index funds have tended to generate attractive returns over time.

6. Elimination of Human Bias: Index funds overcome the bias of human discretion. That is the big problem with most diversified equity funds. There is a very strong element of discretion that is given to the fund manager. In an index fund, these are completely eliminated.

Before investing in index funds, there are a few things to consider such as your financial goals, investment horizon, and risk tolerance.
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