Index funds: Know your category
Top Index funds India: What are index funds?
Index funds are an excellent way to take exposure to the stock markets. In case you wish to replicate a particular index, they provide a very good option. While you may not be able to directly invest in an index (such as Nifty 50) but you can instead invest through a mutual fund called Index Funds. In other words, it is a passive way of putting in money into the stock markets. A major advantage of index funds is that these funds are passively managed and operate at minimum cost offering potentially higher returns at low cost. Here are some commonly asked questions about index funds.
Top Index Funds India: Some commonly asked questions about index funds
Which Index mutual fund has the highest asset under management?
UTI Nifty 50 Index Fund has ₹7941 Cr worth of assets under management (AUM) as of 30-06-2022 - the highest among index mutual funds.
What is the asset under management (AUM) of UTI Nifty 50 Index Fund at the end of June 2022?
UTI Nifty 50 Index Fund has ₹7941 Cr worth of assets under management (AUM) as on 30-06-2022.
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What is the long-term tax if you sell equity mutual funds for profit?
Long-term capital gains on equity mutual funds are taxed at a rate of 10%.
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What was the 2nd largest stock in the portfolio of UTI Nifty 50 Index Fund at the end of June 2022?
HDFC Bank was the 2nd largest stock in the portfolio of UTI Nifty 50 Index Fund at the end of June 2022.
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Which sector has the largest part in the portfolio of UTI Nifty 50 Index Fund at the end of June 2022?
UTI Nifty 50 Index Fund had more than 35% allocation in the Financial Services sector at the end of June 2022, making it the largest sector.
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What is the expense ratio of UTI Nifty 50 Index Fund - Direct Plan?
The expense ratio of UTI Nifty 50 Index Fund - Direct Plan is 0.21% as of June 2022.
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What is the total number of index funds available in India?
As of July 2022, there are over 95 index funds of equity and debt asset classes that are available to invest in.
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What percent of the total inflows in mutual funds for the month of July consisted of index funds?
Index funds comprised a total of 2.5% of all the inflows in mutual funds for the month of July.
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What does the tracking error of an index fund suggest to investors in general?
The tracking error of an index fund suggests how volatile the fund is compared to the benchmark index.
Which index fund is best?
Best index funds keep changing based on certain criteria. You can check out the list of best index funds here.
Is it good to invest in index funds?
Investing in index funds has a lot of advantages including gaining exposure to the market at a very low cost. They also avoid any human bias.
What is in an index fund?
Index funds are an excellent way to take exposure to the stock markets. In case you wish to replicate a particular index, they provide a very good option.
Are index funds good for beginners?
While you may not be able to directly invest in an index (such as Nifty 50) but you can instead invest through a mutual fund called Index Funds. In other words, it is a passive way of putting in money into the stock markets. They are good for beginners.
How much should I invest in index funds monthly?
You should invest based on your risk profile, return requirements, tax considerations, time horizon, liquidity needs and unique circumstances.
How much money do you need to buy index funds?
You can start an SIP in index mutual funds for as low as Rs 500.