What are index funds and ETFs?

Last Updated: May 25, 2025, 23:00 IST Mutual Funds Sahi Hai (Mutual Fund is correct), ‘Nivesh Ka Sahi Kadam’ offered, the presentation highlights index funds and ETF are cheaper investment options. Index funds repeat the performance of the market index. ETF offers real -time trading. For investors looking for an easy and low-cost way to increase their assets, index funds and exchange-traded funds (ETFs), strong options are strong. These options of passive (indirect) investment give you the chance to take advantage of the market performance without the trouble of choosing a share. Let us know what index funds and ETFs are under Nivesh Ka Sahi Kadam. Their specialty, which is the difference between them and how it helps you make decisions with feelings. Index Funds Index Fund Index Funds are mutual funds aimed at repeating the performance of a specific market index such as Nifty 50 or BSE Sensex. These funds in the businesses involved in the index invest in the same relationship. As a result, there is room to get returns according to the relationship. It is a passive investment strategy, so investors do not have to manage it every short time. For this reason, it becomes cheaper and reliable options for long -term investors. The features of the Index Fund need not be managed constantly: Follow the index, which has a limited role of the fund manager, which reduces expenses. Low spending ratio: Funds that need to be managed every few days charge them less fees. This increases the net return. Full opportunities for diversity: Investments are made in all businesses in the index. This reduces the level of risk, as the return depends on the performance of many companies. SIP facility: Investors can start a systematic investment plan (SIP) at the end of the day with a low amount such as £ 500. ETFS Exchange -Trade Fund (ETF) is investment funds that detect an index, sector or asset class (eg equity, bonds or gold). These funds trade in the stock market like different stocks. ETFs offer both diversity of mutual funds and real -time trading. As a result, they become simple and easy to buy and sell options for investors. The features of ETFS in-time enterprise: It can be bought or sold at market prices throughout the work day, which offers flexibility. Low cost: is usually cheaper than active fund, but it may require brokerage fees. Diversity: Investment in multiple security simultaneously, which does not limit the risk to one share and reduces the risk due to investment in many funds. Transparency: It is said that the money of money is every day, which remains their coordination with the index. Many options: equity, date, gold and sectoral index, which can lead to different investment goals. However, differences between ETFs and index funds follow both ETFs and Index Fund and prefer investment at low cost. Some of these main differences are: Trading method: Index funds are bought and sold by AMC or distributors at the end of the day by AMC or distributor. ETFs are trading at real -time prices in the stock market, so investors can buy or sell it at any time during the day. Liquidity or liquidity: ETFs can be purchased or sold immediately during the work time of the market. Transactions in index funds take place at the end of the day, which limit the liquidity (easily buy and sell). Expenditure: Index funds do not have brokerage fees, but may have to pay money for withdrawal. ETFs consist of brokerage fee and prayer-as-as-spread (presentation process fee), which can affect the returns. Minimum investment: Index funds contain small low prices sips, it can easily buy investors. ETFs must buy at least one unit, the price of which depends on the market price. Access: Demat account is not required for index funds, while ETFs need Demat and Trading Account. Why invest in index funds and ETFs? Index funds and ETFs are of work for investors who want: Affordable investment: Returns are increasing over time. Simplicity: It is not necessary to choose stock from passive strategy. Long -term growth: Returns meet the market increase the property. Risk Reduction: Diversity reduces the risk of dependence on the same security. To start investing, choose index or ETFs according to your goals (eg Nifty 50 for large cap or gold ETF for stability). For index funds, start SIP through the amphi-registered platform or buy ETF from a Demat account. Before investing, know about funds related to funds, fees, etc. Understand the problems caused by monitoring the fund so that maximum returns can benefit. Conclusion gives a transparent and affordable way to invest in index funds and ETF market growth. Whether you choose SIP index funds or Trades ETFs. Investing both methods helps you make a long time disciplinary and investment. Through mutual funds Sahi Hai, we make you strong for financial security. Take on index funds and ETF with Nivesh Ka Sahi Kadam and make property with confidence. Mutual funds are correct. ‘NIVESH KA is walking in the right direction for your economic journey with Sahi Kadam’! For more information: https://www.news18features.com/niveshkasahikadam dysclamer: Investment in mutual fund is subject to market risk. Read all the documents related to the scheme carefully before making the investment decision. The performance of the past is not a guarantee for the same results in the future.