Index Funds vs. ETFs: 5 key points to help you choose the right investment
1 month ago

Index Funds vs. ETFs: 5 key points to help you choose the right investment

Live Mint  

Investors in India are now keenly searching for passive investments, this trend is gaining traction as the short term equity market returns are starting to wane due to consistent Foreign Institutional Investors selling. Index Funds do not need a demat account, thereby becoming a convenient option for an investor who does not want to have an indirect mutual fund investment scheme. Systematic Investment Plans Investors can invest in Index Funds under Systematic Investment Plans whereby they can invest a small sum every now and then for a stated period of time. To conclude, both ETFs and Index Funds are excellent passive investment vehicles in India. This is what will assist investors in making informed investment decisions based on basic investment concepts and differences between ETFs and Index Funds.

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History of this topic

How to choose the best index funds for your investment? Expert shares 3 strategies for building a winning portfolio
1 month, 3 weeks ago

How to choose the best index funds for your investment? Expert shares 3 strategies for building a winning portfolio

Live Mint  

Index funds are mutual funds that invest in various stocks within a specific market index. Shaily Gang, Head of Products at Tata Asset Management, explains how indices are constructed and offers three key principles for choosing the right funds: aligning with your risk tolerance through strategic and tactical allocation, minimising tracking errors and expenses, and considering the fund's asset size. …

Index Mutual Funds: From types to advantages; all you need to know
3 months, 3 weeks ago

Index Mutual Funds: From types to advantages; all you need to know

Live Mint  

Mutual Funds: Index funds are passive investment vehicles that mirror benchmark indices, investing largely in their components. Index funds function by meticulously tracking the performance of specific benchmark indices, like NIFTY 50 or SENSEX. {{^adFree}} {{/adFree}} Index funds function by meticulously tracking the performance of specific benchmark indices, like NIFTY 50 or SENSEX. Market capitalisation index funds - These funds …

Index Mutual Funds: From types to advantages; all you need to know
3 months, 3 weeks ago

Index Mutual Funds: From types to advantages; all you need to know

Live Mint  

Index funds are investment vehicles designed to track a benchmark index. Index funds function by meticulously tracking the performance of specific benchmark indices, like NIFTY 50 or SENSEX. Market capitalisation index funds - These funds invest in companies of various market capitalisations, including small-cap, mid-cap, and large-cap stocks, to achieve broad diversification. Equal weight index funds - For example, in …

What are Index Mutual Funds & How to Invest in them?
10 months ago

What are Index Mutual Funds & How to Invest in them?

Hindustan Times  

An investor who has been investing in the stock market for quite a long time often feels to move a step higher because he/she wants to earn significant gains. Index mutual funds are a type of mutual fund that passively follows well-known market indexes. Benefits of Index Mutual Funds Index mutual funds have become popular investment choices because they offer …

Why should you invest in an exchange traded fund, or ETF? An explainer
1 year, 6 months ago

Why should you invest in an exchange traded fund, or ETF? An explainer

Live Mint  

Before opting for a mutual fund, investors often face a dilemma as to which schemes to choose, and which ones to overlook. Although there are options galore when it comes to mutual funds, one category that investors are suggested to explore includes exchange traded funds. Exchange traded funds, or ETFs, are a type of mutual funds that usually track an …

Passive Funds Attracting Investors, Index Funds More Preferred Than ETFs: Survey
1 year, 7 months ago

Passive Funds Attracting Investors, Index Funds More Preferred Than ETFs: Survey

ABP News  

Passive funds have taken centre stage in India's mutual funds market in the past few years, increasing its market share over 17 per cent in 2023 from 1.4 per cent in 2015, according to a Motilal Oswal AMC survey released Tuesday. The survey conducted among 2,000 investors from around the country, showed that 61 per cent of investors have invested …

Passive funds gain traction among investors in India, market share witnesses growth: Study
1 year, 7 months ago

Passive funds gain traction among investors in India, market share witnesses growth: Study

India TV News  

A recent study revealed that passive funds have gained traction among investors in India in the last few years, capturing a market share of over 17 per cent of Assets Under Management in 2023 from 1.4 per cent in 2015. Low-cost nature of passive funds is biggest attraction According to the study by Motilal Oswal Asset Management Company, 61 per …

What are ETFs and why should you invest in them?
1 year, 7 months ago

What are ETFs and why should you invest in them?

Live Mint  

An exchange traded fund, or ETF, refers to a basket of securities that works like an index mutual fund apart from the fact that the form can be traded on a stock exchange just as a listed share. Since ETFs can be bought and sold during the day, their price fluctuates throughout the trading day unlike mutual funds which have …

Index Funds: How beneficial it is for investing in long-term goals
2 years, 2 months ago

Index Funds: How beneficial it is for investing in long-term goals

Live Mint  

Index funds are primarily mutual funds that invest in similar stocks within a specific market index. The main advantage of investing in index funds is that they have low management costs because they match their underlying benchmark and don't need a team of research analysts to help fund managers choose the best stocks, said Mahesh Shukla, CEO & Founder, PayMe. …

What to consider before selecting an index fund
2 years, 5 months ago

What to consider before selecting an index fund

Live Mint  

Active and passive management are two distinct ways of managing portfolios. In India, the first index fund was offered in 2001, and since then index funds have come a long way. A not-so-sophisticated investor might be lured to an index fund whose return is higher than the index or other index funds. The key performance statistic for evaluating index funds …

Explain Like I’m 5: What is an ETF?
2 years, 11 months ago

Explain Like I’m 5: What is an ETF?

Live Mint  

An Exchange Traded Fund is a combination of securities that trade on the stock exchange in small tradeable units just as a stock. Exchange Traded Funds are seen as attractive investment bets given their low cost, stock-like features as well as the tax exemption which some categories of ETFs offer. Exchange Traded Funds are considered a blend of a stock …

ETFs vs. Stocks vs. Mutual Funds– What’s the Difference?
2 years, 11 months ago

ETFs vs. Stocks vs. Mutual Funds– What’s the Difference?

Live Mint  

Securing your financial future is one of the most important responsibilities. Mutual funds, Stocks and ETFs are some of the most popular of the numerous investment choices accessible to investors in India. Let’s take a look at the difference between ETFs vs. Stocks vs. Mutual Funds. ETFs vs Stocks vs Mutual funds Fees and Expenses ETFs do not impose marketing …

How to choose the best ETF to Invest in?
3 years, 3 months ago

How to choose the best ETF to Invest in?

Live Mint  

ETFs, or Exchange Traded Funds, are mutual funds that may be traded like stocks on a stock exchange. Factors to be considered while choosing an ETF Size of an ETF While there are no regulations, ETFs with a big fund size show investor interest and, as a result, suggest better liquidity and cheaper costs. Trading volumes The fact that you …

What’s the difference between ETFs, mutual funds and index funds?
3 years, 5 months ago

What’s the difference between ETFs, mutual funds and index funds?

LA Times  

There are lots of ways to invest. Mutual funds and ETFs both allow you to buy a diversified mix of investments, but they’re structured differently. That means the underlying investments may frequently change as the fund manager tries to “beat the market” and get a better return than a market index or benchmark such as the Standard & Poor’s 500. …

Invest in a combination of active and index funds instead of sticking to one
4 years, 5 months ago

Invest in a combination of active and index funds instead of sticking to one

Live Mint  

Comparisons between passively-managed index funds and actively-managed equity diversified active funds are common these days. The popularity of index funds and the inclination of investors towards these funds have increased not just because they are expected to outperform active funds in future, but also for their lower expense ratios. This has started reflecting in the percentage of active funds outperforming …

ETFs better than actively managed funds?
6 years, 1 month ago

ETFs better than actively managed funds?

Live Mint  

Mumbai: Exchange-traded funds performed better than the large cap equity funds in the last one year. According to data by online investment advisory firm, Valueresearchonline.com, as on January 23, 2018, ETFs clocked negative returns of -1.61% whereas large cap equity funds gave negative returns of -4.23%. “The discrepancy between index returns and ETF returns is because of high tracking errors …

Do Indian investors see value in index funds yet?
6 years, 1 month ago

Do Indian investors see value in index funds yet?

Live Mint  

John C. Bogle, who introduced and popularised index funds over the past four decades, died recently. Investors have begun to see benefits of index funds, ETFs There are two dominant styles of asset management globally: active and passive. —Suresh Sadagopan, Founder, Ladder7 Financial Advisories Index funds to gain in future, but active funds here to stay In India, index funds …

Investing in stocks needs deep understanding of markets
6 years, 8 months ago

Investing in stocks needs deep understanding of markets

Live Mint  

I am interested to invest in Indian equities. In the US, passive investing into indices has taken over actively managed mutual funds. Is it the same in India, or are actively managed mutual funds generating superior returns than Sensex or Nifty? —Vikrant Agrawal Unlike the US, most actively managed mutual funds in India have outperformed their benchmark indices by a …

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