Imagine your enjoying your vacation traveling different places around the world and your portfolio working for you. Welcome to the world of Index Funds.
Index funds are passive funds tracking a particular Index. In India, index funds popularly track Nifty, Nifty Next 50 and Sensex. Sensex in last 20 years have given a return of +928%, but what makes Index funds high performer are their in-build feature of crunching portfolio. This feature help index to adding relevant companies in those period and scrapping the worst performers.
We have earlier discussed whether Index Fund Investing way for Future ? and today in this post we will understand how to make best use of Index Funds in different scenarios.
- Long Term Investor: If your a long term investor, Index funds are best for you ! No tension of changing fund managers, performance of the funds, fund ranking, paying advisors, etc. All you need to do is invest in your favorite index fund with lowest TER and enjoy 😃
- Short Term Investor: Learn to understand the trend and invest at every fall in the market. If market is in uptrend any fall is buying opportunity. In terms of India, currently Demonetization and Surgical Strike were best investment opportunity to invest in Index funds.
- Tracking PE Ratio: If you are a market timer or a value investor like Warren Buffet who can wait for years without any transaction on pile of cash - Price to Earning (PE) investing is just for you. So your wait begins now 😉
- All Weather Investor (AIW): Index funds are best for All Weather Investing. Every asset has it time, Index funds helps you to perfectly manage equity portion of your portfolio. So now you to easy manage other asset singing - Apna Time Aayega 💪
Have you started investing in Index Funds yet ?
How to make Best use of Index Fund ?
Reviewed by Abhishek Mallya
on
March 22, 2019
Rating:
Reviewed by Abhishek Mallya
on
March 22, 2019
Rating:
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