Blindly invest your money in this fund and sleep peacefully, the exchange itself will monitor it.

New Delhi. Investors who invest money in stock market and mutual funds are always looking for such options where the risk is less and the returns are tremendous. If you are also looking for a similar option, then Index Funds can end your worries. Here, the person investing money neither has to worry about monitoring it nor about the ups and downs in the market.

Balwant Jain, an expert in investment matters, says that index funds do not invest in any one company or any one category. This fund invests money in all the companies present on the entire exchange. This is the reason whether the market is falling or rising, the risk in index funds is generally less. Investors who want to get good returns with less risk should opt for index funds.

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How does index fund work?
Index fund means exchange. For example, exchanges like NSE Nifty and BSE Sensex issue their own funds. Although there are about 627 companies listed on NSE, but Nifty lists only the top 50 best performing companies and invests its fund’s money in these companies only. Similarly, there are around 2,600 companies listed on BSE but the Sensex index works only on the basis of top 30 companies and invests its money in it.

Investors become carefree
Investors who invest money in index funds become carefree. They do not need to monitor their funds themselves. Usually, investors in equity funds have to change their portfolio from time to time, but index funds themselves remove poorly performing companies from the list. Therefore, the level of risk in these completely equity based funds reduces.

Got good returns in rising market
If you look at the stock market, both Nifty and Sensex have gained about 20 percent in 2023. Even in 2024, experts estimate that there could be a rise of more than 15 percent on both the exchanges. Talking about index funds, since their inception in 1957, they have given an average annual return of 10.26% till 2023. If a person invests for a long term of 7 years or more, he can easily get a return of 10 to 12 percent.

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• Indices giving highest returns
• LIC MF Nifty Next 50 Index Fund has given 16 percent returns in 10 years and 30 percent returns in the last one year.
• ICICI Prudential Nifty Next 50 Index Fund has also given returns of 16 percent in the last 10 years and 30 percent in one year.
• Sundaram Nifty 100 Equal Weight Fund has given returns of 13 percent in a period of 10 years and 32 percent within a year.
• ICICI Prudential Nifty Next 50 Index Fund has given returns of 15 percent in 5 years and 30 percent in one year.
• UTI Nifty Next 50 Index Fund has also given tremendous returns of 15 percent in 5 years and 30 percent in one year.

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