Know This Before Investing In Index Funds || Index Investing Explained

Know this before Investing in Index Funds you should know the difference between index fund and equal weight index fund.

The easiest option to invest in stocks is to buy an index mutual fund. So for example, Nifty 50 index fund which gives you top 50 stocks in 1 single mutual fund.

But the problem is that if you invest 1 lakh in a nifty 50 index fund, you are investing almost 60,000 in top 10 stocks. Remaining 40 stocks will only get limited investment.

If you don’t want to invest BIG part of your money only in top 10 stocks, you should consider Nifty 50 Equal weight index mutual funds. Because in this index fund, your money will get invested almost equally in all 50 stocks.

So if you are investing 1 lac, all 50 stocks will get 2% allocation.

But which one is better?

#investingforbeginners #indianstockmarket #mutualfunds

DISCLAIMER:

PLEASE NOTE that I AM NOT A SEBI REGISTERED ADVISOR SO please do your own research. This video is only for education and entertainment purposes.

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