MUST WATCH - What are index funds in India - Nifty50 Index Funds Explained

In this video, I explain what are index funds in Indian context.

What are Index Funds?
What is a Nifty50 Index fund?
What returns one can get in Nifty50 Index Funds?

If you invested 1 Lac in 2000 in a Nifty50 Index, you would have got 11.64 Lacs in 2022.

Just to put this in context, an Fixed deposit at the rate of 7% would have given you only 4.14 Lacs.

So almost 3 times return vis-a-vis Fixed deposits.

Of Course Index funds are a lot riskier than Fixed deposits but the magic is that “over 10 years, the risk reduces dramatically”.

This is why I am not surprised that the, “Index funds” Assets Under Management (AUMs) have grown by 590% in just last 2 years in India

And the number of “Index funds” in India have DOUBLED in the last 2 years.

This is what Warren Buffet has to say about Index Funds:

“Keep buying it through the thick and thin, specially through thin” 😁😁

If you don’t have time for active investing, please make sure you learn Index funds (also called (passive investments).

Why are Index funds a great investment class?

🎯 Lower expense ratio than mutual funds
🎯 Diversification e.g. Nifty 50 Index funds contain 50 companies across 13 sectors
🎯 Great for beginners as YOU don’t need to pick specific stocks

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