How long should you stay invested in index funds? This is the answer
Live MintMany mutual fund houses are now coming up with new index fund launches considering more investors are showing interest in passive fund investments. Viral Bhatt, Founder, Money Mantra, said, “Parking money in index funds can provide several benefits to investors, including: Diversification : Index funds provide broad market exposure by investing in a basket of stocks that track a specific index. Consistent Performance : Index funds tend to closely track the performance of the underlying index, providing a relatively stable return that is less likely to be significantly impacted by the performance of any one company. : Index funds tend to closely track the performance of the underlying index, providing a relatively stable return that is less likely to be significantly impacted by the performance of any one company. Name of the fund Three-year returns Five-year returns 10-year returns UTI Nifty 50 Index Fund 14.50 12.17 12.50 HDFC Index Fund - S&P BSE Sensex Plan 14.50 13.03 13.03 LIC MF S&P BSE Sensex Index Fund 14.39 12.76 12.38 SBI Nifty Index Fund 14.30 11.95 12.16 IDBI Nifty Index Fund 14.19 11.92 12.13 ICICI Prudential Nifty 50 Index Fund 14.49 12.06 12.57 Source: MoneyControl An evaluation of the mutual fund returns over a period underlines how returns tend to be consistent if investors continue to hold their investments.