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Showing posts from October, 2020

Which is the best plot for New Investors Mutual fund or Equity Index Fund for long term investment?

Nowadays Financial awareness is more among the new generation people thanks to the large scale digital advertisement on all social media platforms. Investment in mutual funds and the Equity market as a whole is showing an uptrend despite of the current economic situation. I already have a post on what is mutual funds, you can have a look here . Lot of talk is going around related to whether the investors should choose Index funds for their long term investment goals or they can use the mutual funds instead, before understanding that we would try to look into what is an Index Fund? Index Investing The Idea of investment in Index fund especially comes from the developed countries where the indexes are saturated and the benefit out of actively managed fund is very less. One of the attractive feature of the index funds is Negligible Expense Ratio which means that the cost of managing the fund is very less because it tracks the underlying Index be it Sensex or Nifty. Compared to an actively