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How To Invest In Index Funds in Tamil/தமிழ் (2019)
Index funds, as the name suggests, invest in an index. These funds purchase all the stocks in the same proportion as in a particular index. This means the scheme will perform in tandem with the index it is tracking, save for a small difference known as tracking error.
A mutual fund that replicates the portfolio of an index is known as index funds. These funds are also known as passive funds or index-tied or index-tracked funds.
How much Should You Invest in an Index Fund?
We believe an individual can begin with 20% exposure to such funds and gradually increase it to 50% or even higher if the trend of active fund managers is failing to beat index become prominent over time.
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