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All about Index Funds

All posts about Equity

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About Index Funds

·         In India we have majorly two market indexes that are Sensex and Nifty
·         Sensex is the oldest market index for equities; it includes shares of 30 companies in BSE was created in 1986.
·         NSE(National stock exchange) was founded in 1992 includes 50 companies .
§  30 companies in BSE are same in NSE also. NSE has 20 more additional companies along with BSE 30 companies.

·         However, both exchanges follow the same trading mechanism, trading hours, settlement process, etc.


In short , Index represents the best companies in India listed in terms of market capitalization.
·       .Index funds in BSE and NSE are provided by some mutual fund companies like HDFC mutual fund,ICICI Prudential mutual fund, IDBI Mutual fund,UTI Mutual fund etc.
·         In General NSE categories the companies in index to like NIFTY 50, NIFTY NEXT 50, NIFTY 100,NIFTY MIDCAP 50 etc. HDFC mutual fund states that Index fund sensex 30 & Nifty 50 has more or less same return in last 10 years. In deep,  It is better to have Nifty 50 Index fund as basket size is bigger to Sensex 30. The risk is distributed over 50 companies and growth can be optimum .




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