{"id":7536,"date":"2020-04-16T11:53:06","date_gmt":"2020-04-16T06:23:06","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=7536"},"modified":"2020-04-16T11:53:06","modified_gmt":"2020-04-16T06:23:06","slug":"index-funds","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/index-funds\/","title":{"rendered":"Index funds"},"content":{"rendered":"<section class=\"hero-section\" data-type=\"type-1\" data-alignment=\"left\">\n<header class=\"entry-header\"><span style=\"color: #0000ff;\"><strong>Relevance: Prelims: Economy<\/strong><\/span><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/image.slidesharecdn.com\/indexfundsitseffectsonindianeconomy-111230103238-phpapp02\/95\/index-funds-its-effects-on-indian-economy-3-728.jpg?cb=1325243842\" alt=\"Index funds &amp; its effects on indian economy\" \/><\/p>\n<p><span style=\"color: #ff0000;\"><strong>Why in news?<\/strong><\/span><\/p>\n<\/header>\n<\/section>\n<div class=\"entry-content\">\n<p>\u2022 Index funds, as the name suggests, are funds that replicate a certain index. <strong>So, if there is a Sensex fund, it will have the same 30 stocks that are there in the Sensex.<\/strong><\/p>\n<p>\u2022 Further, the weightage of each stock in the fund would also mirror their respective weightage in the actual index. Globally, there are many index funds that replicate popular benchmarks like S and P 500 and Dow Jones.<\/p>\n<p>\u2022 In the Indian arena, most of the leading mutual fund houses offer index funds based on Sensex or Nifty. Index funds are a form of passive funds since the fund manager does not have to actively do any kind of stock picking. The fund sees a churn in its portfolio only if the actual index sees any inclusion or exclusion.<\/p>\n<p><span style=\"color: #ff0000;\"><b>Benefits of investing in index fund:<\/b><\/span><\/p>\n<p>\u2022 Typically, the benchmark index of any exchange would comprise the largest and most liquid companies publicly listed on that bourse.<\/p>\n<p>\u2022 The benchmarks are quite diversified in terms of sector representation as well. So, investing in an index fund allows the investor to have a well-diversified portfolio of the largest companies.<\/p>\n<p>\u2022 An investor can own a basket of stocks at a much lower cost compared to owning each stock individually in a benchmark.<\/p>\n<\/div>\n<p><img decoding=\"async\" src=\"https:\/\/image.slidesharecdn.com\/indexfundsitseffectsonindianeconomy-111230103238-phpapp02\/95\/index-funds-its-effects-on-indian-economy-4-728.jpg?cb=1325243842\" alt=\"Index funds &amp; its effects on indian economy\" \/><\/p>\n<p>&nbsp;<\/p>\n<div class=\"entry-content\">\n<p><span style=\"color: #0000ff;\"><strong>For more such notes, Articles, News &amp; Views Join our Telegram Channel.<\/strong><\/span><\/p>\n<p><a title=\"Telegram link\" href=\"https:\/\/t.me\/triumphias\" target=\"_blank\"><span style=\"color: #ff0000;\"><strong>https:\/\/t.me\/triumphias<\/strong><\/span><\/a><\/p>\n<p><span style=\"color: #0000ff;\"><strong>Click the link below to see the details about the UPSC \u2013Civils courses offered by Triumph IAS.<\/strong><\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"Courses available\" href=\"https:\/\/triumphias.com\/pages-all-courses.php\">https:\/\/triumphias.com\/pages-all-courses.php<\/a><\/strong><\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Relevance: Prelims: Economy Why in news? \u2022 Index funds, as the name suggests, are funds that replicate a certain index.<\/p>\n","protected":false},"author":1,"featured_media":7214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[123,224],"tags":[392],"class_list":["post-7536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","category-quick-revision-prelims","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=7536"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7536\/revisions"}],"predecessor-version":[{"id":7537,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7536\/revisions\/7537"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/7214"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=7536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=7536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=7536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}