Investing Simplified: All You Need to Know About Index Funds
Index mutual funds are designed to mimic the performance of a specific stock market index, such as BSE Sensex, NSE Nifty or others. These funds are likely to replicate the performance of the index. They are also called passively managed funds. This implies, fund managers invest in the same securities and the same amount as in the original index. They do not alter the portfolio composition in any way. Index funds look to deliver returns comparable to the tracked index.