Invest in Index Funds
Simple, low-cost passive investing that tracks major market indices. No demat account needed.
What are Index Funds?
Index Funds are passively managed mutual fund schemes that aim to replicate the performance of a benchmark index like Nifty 50 or S&P BSE Sensex. They invest in the same stocks as the index and in the same proportion.
Index Funds offer the simplicity of mutual fund investing combined with the cost efficiency of passive management.
Benefits of Index Funds
No Demat Required
Unlike ETFs, you can invest in index funds directly through the AMC without a demat account.
SIP Friendly
Set up easy SIPs to invest regularly in index funds and benefit from rupee-cost averaging.
Low Expense Ratio
Passive management means lower fund management fees compared to actively managed funds.
Index Fund FAQs
The minimum lump sum investment is typically ₹5,000 and the minimum SIP amount is ₹500–₹1,000 depending on the scheme.
Index Funds carry market risk as they invest in equities. However, they are diversified across index constituents which reduces stock-specific risk.
Index Funds simply replicate an index without stock-picking. Active funds try to beat the benchmark through active management, which comes at a higher cost.