{"id":9887,"date":"2023-01-31T13:29:19","date_gmt":"2023-01-31T07:59:19","guid":{"rendered":"https:\/\/www.tickertape.in\/glossary\/?p=9887"},"modified":"2023-02-01T17:06:39","modified_gmt":"2023-02-01T11:36:39","slug":"index-fund-meaning-working-pros-and-taxation","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/glossary\/index-fund-meaning-working-pros-and-taxation\/","title":{"rendered":"Index Fund &#8211; Meaning, Working, Pros and Taxation"},"content":{"rendered":"\n<p>Investors in India have a plethora of <a href=\"https:\/\/www.tickertape.in\/glossary\/investment-meaning-types-how-to-invest-and-savings-vs-investments\/\">investment<\/a> options to choose from. Stocks, bonds and <a href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/\">mutual funds<\/a> are the most common investment options. However, another very popular investment vehicle is the index fund.&nbsp;<\/p>\n\n\n\n<p>Whether you&#8217;re a seasoned investor or just starting your investing journey, index funds may add good value to your portfolio. Read on to find out what index funds are, what traits make them attractive to investors, how you can invest in them, and more!<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"882\" height=\"520\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-19.png\" alt=\"\" class=\"wp-image-9893\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-19.png 882w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-19-300x177.png 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-19-300x177@2x.png 600w\" sizes=\"(max-width: 882px) 100vw, 882px\" \/><figcaption class=\"wp-element-caption\">Image source: https:\/\/www.utimf.com\/<\/figcaption><\/figure><\/div>\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_22 counter-hierarchy counter-numeric\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">You will Learn About: <\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/glossary\/index-fund-meaning-working-pros-and-taxation\/#What-is-an-index\" title=\"What is an index?&nbsp;\">What is an index?&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/glossary\/index-fund-meaning-working-pros-and-taxation\/#What-is-an-index-fund\" title=\"What is an index fund?&nbsp;\">What is an index fund?&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/glossary\/index-fund-meaning-working-pros-and-taxation\/#How-does-an-index-fund-work\" title=\"How does an index fund work?\">How does an index fund work?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/glossary\/index-fund-meaning-working-pros-and-taxation\/#Who-should-invest-in-an-index-fund\" title=\"Who should invest in an index fund?&nbsp;\">Who should invest in an index fund?&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/glossary\/index-fund-meaning-working-pros-and-taxation\/#Factors-to-consider-when-investing-in-index-funds\" title=\"Factors to consider when investing in index funds\">Factors to consider when investing in index funds<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/glossary\/index-fund-meaning-working-pros-and-taxation\/#Advantages-of-an-index-fund\" title=\"Advantages of an index fund&nbsp;\">Advantages of an index fund&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/glossary\/index-fund-meaning-working-pros-and-taxation\/#How-to-invest-in-an-index-fund-in-India\" title=\"How to invest in an index fund in India?&nbsp;\">How to invest in an index fund in India?&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/glossary\/index-fund-meaning-working-pros-and-taxation\/#Tax-on-index-funds\" title=\"Tax on index funds\">Tax on index funds<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/glossary\/index-fund-meaning-working-pros-and-taxation\/#Conclusion\" title=\"Conclusion&nbsp;\">Conclusion&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/glossary\/index-fund-meaning-working-pros-and-taxation\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-an-index\"><\/span><strong>What is an index?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before we explain what an index fund is, it&#8217;s important to understand what an index is. In simpler terms, an index is a portfolio of certain stocks. The proportion of each <a href=\"https:\/\/www.tickertape.in\/glossary\/stock\/\">stock<\/a> in such a portfolio is calculated based on factors such as market cap, revenue, price, etc. The point of an index is to act as a proxy for the collection of stocks that make it up: the value of the index reflects the aggregate value of its constituent stocks.<\/p>\n\n\n\n<p>The most useful kind of index is a market index, which comprises important stocks that can significantly affect the stock market as a whole. Some examples of market indexes in the US are the S&amp;P 500, the Dow Jones Industrial Average, and the Nasdaq Composite Index. The two main market indexes in India are the NSE Nifty and the BSE Sensex.<\/p>\n\n\n\n<p>Some indexes also track specific sectors, such as <a href=\"https:\/\/www.tickertape.in\/indices\/nifty-it-index-.NIFTYIT\" target=\"_blank\" rel=\"noreferrer noopener\">IT<\/a>, <a href=\"https:\/\/www.tickertape.in\/indices\/nifty-fmcg-index-.NIFTYFMCG\" target=\"_blank\" rel=\"noreferrer noopener\">FMCG<\/a>, <a href=\"https:\/\/www.tickertape.in\/indices\/nifty-bank-index-.NSEBANK\" target=\"_blank\" rel=\"noreferrer noopener\">banking<\/a>, <a href=\"https:\/\/www.tickertape.in\/indices\/nifty-auto-index-.NIFTYAUTO\" target=\"_blank\" rel=\"noreferrer noopener\">automobiles<\/a>, <a href=\"https:\/\/www.tickertape.in\/indices\/nifty-pharma-index-.NIPHARM\" target=\"_blank\" rel=\"noreferrer noopener\">pharmaceuticals<\/a>, etc.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-is-an-index-fund\"><\/span><strong>What is an index fund<\/strong><strong>?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An index fund constitutes a fund whose portfolio is put together in such a way as to track the components of some index. In other words, an index fund is an actual fund with a portfolio that mimics the performance of a certain index. Thus, if the market as a whole performs well, market indexes and index funds should also rise in value. The same is true for specific sectors and their corresponding indices and index funds.<\/p>\n\n\n\n<p>Index funds may be mutual funds or exchange-traded funds (ETFs). While ETFs can be traded intraday like normal stocks, mutual funds can typically only be sold at the end of each day. There might also be differences in the fees and tax implications of these two types of index funds.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-does-an-index-fund-work\"><\/span><strong>How does an index fund work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Typically, an index fund follows a benchmark index. When you invest your money in index funds, the fund allocates the money to different companies and sectors, thereby reducing your risk and research efforts.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"1024\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-20-1024x1024.png\" alt=\"\" class=\"wp-image-9895\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-20-1024x1024.png 1024w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-20-150x150@2x.png 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-20-150x150.png 150w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-20-70x70.png 70w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-20-370x370.png 370w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-20.png 1160w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-20-300x300@2x.png 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Image source: https:\/\/napkinfinance.com\/<\/figcaption><\/figure><\/div>\n\n\n<h2><span class=\"ez-toc-section\" id=\"Who-should-invest-in-an-index-fund\"><\/span><strong>Who should invest in an <\/strong><strong>index<\/strong><strong> fund?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Index funds have several traits that make them a good investment choice. In general, ETFs based on market indexes are relatively inexpensive (in terms of their fees) and can deliver consistent and significant returns over time.&nbsp;<\/p>\n\n\n\n<p>Moreover, investors can avoid the hassle and risk of researching and picking individual stocks by investing in index funds. These characteristics also make index funds a good choice for people looking to save for retirement. For instance, the <a href=\"https:\/\/www.tickertape.in\/indices\/nifty-50-index-.NSEI\" target=\"_blank\" rel=\"noreferrer noopener\">NSE Nifty<\/a> has provided annualised returns of around 11% over 27 yrs, which is equivalent to an absolute return of 1,700%! This can be treated as an attractive rate of return.<\/p>\n\n\n\n<p>If you have a large risk appetite and are looking for extremely high returns, then index funds might not be for you.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Factors-to-consider-when-investing-in-index-funds\"><\/span><strong>Factors to consider when investing in <\/strong><strong>index <\/strong><strong>funds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While index funds are a good bet for most investors, below are a few factors you must consider before investing &#8211;&nbsp;<\/p>\n\n\n\n<ol>\n<li><strong>Expense ratio<\/strong><\/li>\n<\/ol>\n\n\n\n<p>The expense ratio is the annual fee charged by index fund managers to keep the fund in sync with the underlying index. It typically varies from 0.10% to around 2%, although it can be as low as 0.06%. The lower the expense ratio, the more returns you can enjoy.<\/p>\n\n\n\n<ol start=\"2\">\n<li><strong>Level of diversification<\/strong><\/li>\n<\/ol>\n\n\n\n<p>In general, diversification is considered to be a risk-mitigating measure in investing. However, it can yield lower returns than a more risky, concentrated approach.&nbsp;<\/p>\n\n\n\n<p>Explore various index funds to determine how many companies and\/or sectors they are invested in so that you can gauge if their level of diversification aligns with your investing goals.<\/p>\n\n\n\n<ol start=\"3\">\n<li><strong>Returns over various periods<\/strong><\/li>\n<\/ol>\n\n\n\n<p>In addition to the average returns over time, you should also look at the returns over various periods, such as 3 yrs, 5 yrs, and 10 yrs. This can help you gauge the overall performance and also ensure you can handle the <a href=\"https:\/\/www.tickertape.in\/glossary\/volatility-meaning-calculation-importance-and-types\/\">volatility<\/a>.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Advantages-of-an-index-fund\"><\/span><strong>Advantages of an <\/strong><strong>index<\/strong><strong> fund&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are several important advantages to investing in index funds. Some of them are:<\/p>\n\n\n\n<ol>\n<li><strong>Ease of management<\/strong><\/li>\n<\/ol>\n\n\n\n<p>It&#8217;s easier for individual investors to keep track of a single index fund rather than a large number of different stocks.<\/p>\n\n\n\n<ol start=\"2\">\n<li><strong>Relatively low fees<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Because index funds are &#8220;passively&#8221; managed (i.e., fund managers only have to follow the underlying index rather than figure out a strategy on their own), their fees are relatively low.<\/p>\n\n\n\n<ol start=\"3\">\n<li><strong>Minimisation of the human bias<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Index funds are built based on an index, which itself is based on specific rules. Thus, the role of human biases and oversights is minimised when investing in them.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-to-invest-in-an-index-fund-in-India\"><\/span><strong>How to invest in an index fund in India?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Many investment and brokerage platforms allow you to invest in index funds. Typically, you must create a demat account, complete KYC formalities, and connect your bank account. And that&#8217;s it! You are ready to invest.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Tax-on-index-funds\"><\/span><strong>Tax on <\/strong><strong>index funds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When the constituent stocks or units of an index fund are &#8220;redeemed&#8221; (i.e., sold), the gains obtained are subject to <a href=\"https:\/\/www.tickertape.in\/glossary\/what-is-capital-definition-of-capital-types-and-its-importance\/\">capital<\/a> gains tax. There are two kinds:<\/p>\n\n\n\n<ol>\n<li><strong>Long-term capital gains (LTCG)<\/strong><\/li>\n<\/ol>\n\n\n\n<p>These are capital gains obtained by redeeming units held for more than 12 months. The associated tax rate is 10%.<\/p>\n\n\n\n<ol start=\"2\">\n<li><strong>Short-term capital gains (STCG)<\/strong><\/li>\n<\/ol>\n\n\n\n<p>These are capital gains obtained by redeeming units held for less than 12 months. The associated tax rate is 15%.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Index funds constitute a portfolio of stocks that tracks the performance of an index. These funds can make for an excellent investment option and have a whole host of benefits to offer. Remember to carry out some research to find the index funds best suited for you. Consult your financial advisor before investing.&nbsp;Use <a href=\"https:\/\/www.tickertape.in\" target=\"_blank\" rel=\"noreferrer noopener\">Tickertape<\/a> to know the performance of Index Funds. <\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-83e7c3af uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-5118aa4b\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is a market index?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">A market index is a portfolio that consists of the stocks of the most important securities in a given market, typically the stock market. It tracks the performance of the market as a whole.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-106279eb\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is an index fund?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">An index fund is a fund whose portfolio is constructed in such a way that it tracks the performance of a specific index.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-9fec766f\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Are index funds a good investment?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Index funds have various advantages, such as relatively low fees, good average rates of return, and ease of management, making them a good investment choice for most investors.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-4e2044ec\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>How to invest in the Nifty index?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Investing in the Nifty index is the same as investing in any other index fund. You must create a demat account, complete KYC formalities, and connect your bank account. Then find out the best index fund following Nifty and invest in it.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-d542747f\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Which Nifty index fund is the best?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">The best Nifty index fund depends on various factors like performance, expense ratio, return expectation, risk, etc. You can evaluate all Nifty Index funds on <a href=\"https:\/\/www.tickertape.in\" target=\"_blank\" rel=\"noreferrer noopener\">Tickertape<\/a> and choose the one that suits you.<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Whether you&#8217;re a seasoned investor or just starting your investing journey, index funds may add good value to your portfolio. Read on to find out what index funds are, what traits make them attractive to investors, how you can invest in them, and more!<\/p>\n","protected":false},"author":96,"featured_media":9891,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[],"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05.png","uagb_featured_image_src":{"full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05.png",2086,1086,false],"thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-150x150.png",150,150,true],"medium":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-300x156.png",300,156,true],"medium_large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05.png",768,400,false],"large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-1024x533.png",770,401,true],"1536x1536":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-1536x800.png",1536,800,true],"2048x2048":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-2048x1066.png",2048,1066,true],"authorship-box-avatar":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-150x150.png",150,150,true],"authorship-box-related":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-70x70.png",70,70,true],"post-thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-270x180.png",270,180,true],"contentberg-main":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-770x515.png",770,515,true],"contentberg-main-full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-1170x508.png",1170,508,true],"contentberg-slider-stylish":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-900x515.png",900,515,true],"contentberg-slider-carousel":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-370x370.png",370,370,true],"contentberg-slider-grid-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-554x466.png",554,466,true],"contentberg-slider-grid-b-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-306x466.png",306,466,true],"contentberg-slider-bold-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-150x150.png",150,150,true],"contentberg-grid":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-370x245.png",370,245,true],"contentberg-list":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-260x200.png",260,200,true],"contentberg-list-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-370x305.png",370,305,true],"contentberg-thumb":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-87x67.png",87,67,true],"contentberg-thumb-alt":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/05-150x150.png",150,150,true]},"uagb_author_info":{"display_name":"Nikitha","author_link":"%3Fmolongui_byline=true%26mca="},"uagb_comment_info":0,"uagb_excerpt":"Whether you're a seasoned investor or just starting your investing journey, index funds may add good value to your portfolio. Read on to find out what index funds are, what traits make them attractive to investors, how you can invest in them, and more!","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/9887"}],"collection":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/users\/96"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/comments?post=9887"}],"version-history":[{"count":7,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/9887\/revisions"}],"predecessor-version":[{"id":9933,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/9887\/revisions\/9933"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media\/9891"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media?parent=9887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/categories?post=9887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/tags?post=9887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}