True

That’s right! Actually, the word just gives it away – Exchange traded fund. ETFs work just like stocks. So, you do need a demat account to buy and sell them.

Hard luck! You see, the words just give it away – Exchange traded fund, which means they are listed on a stock exchange. So, you do need a demat account to buy and sell them.

All of the above

Don’t worry, you got at least one right. Actually, all of the above are the correct differences between index funds and ETF. You certainly need to read up more on index funds and ETFs.

Don’t worry, you got at least one right. Actually, all of the above are the correct differences between index funds and ETF. You certainly need to read up more on index funds and ETFs.

Don’t worry, you got at least one right. Actually, all of the above are the correct differences between index funds and ETF. You certainly need to read up more on index funds and ETFs.

Hello master! You are a total believe in indexing, right! All of the above are the correct differences between index funds and ETF.

Multi cap

Time to brush up your basics! As a trivia, the Top 500 stocks represent around 94% of the value of all stocks (large, mid and small) listed on the respective exchanges – BSE and NSE. So, an index fund that mirrors the BSE 500 or Nifty 500 is bound to a multicap fund.

Time to brush up your basics! As a trivia, the Top 500 stocks represent around 94% of the value of all stocks (large, mid and small) listed on the respective exchanges – BSE and NSE. So, an index fund that mirrors the BSE 500 or Nifty 500 is bound to a multicap fund.

Time to brush up your basics! As a trivia, the Top 500 stocks represent around 94% of the value of all stocks (large, mid and small) listed on the respective exchanges – BSE and NSE. So, an index fund that mirrors the BSE 500 or Nifty 500 is bound to a multicap fund.

That was easy! As a trivia, the Top 500 stocks represent around 94% of the value of all stocks (large, mid and small) listed on the respective exchanges – BSE and NSE. So, an index fund that mirrors the BSE 500 or Nifty 500 is bound to a multicap fund.

BSE Sensex

Super easy! Sensex or the Sensitive index comprises of the 30 largest bluechips of India commanding over 50% of the market size. So, if large cap is your zone, an index fund based on Sensex or Nifty 50 can be your calling.

How could you miss this! Sensex or the Sensitive index comprises of the 30 largest bluechips of India commanding over 50% of the market size.So, if large cap is your zone, an index fund based on Sensex or Nifty 50 can be your calling.

How could you miss this! Sensex or the Sensitive index comprises of the 30 largest bluechips of India commanding over 50% of the market size.So, if large cap is your zone, an index fund based on Sensex or Nifty 50 can be your calling.

How could you miss this! Sensex or the Sensitive index comprises of the 30 largest bluechips of India commanding over 50% of the market size.So, if large cap is your zone, an index fund based on Sensex or Nifty 50 can be your calling.

Fund Expenses

This could be tricky! No worries though. Here’s the learning for you. Since the fund incurs expenses to trade, rebalance, customer service, etc. that itself becomes a main reason for difference between the returns of the benchmark and the index fund. No. of stocks in both the index fund and benchmark are similar. And since the index fund just mirrors the index, you could theoretically pick any index fund.

We are talking passive investing but you are not a passive learner. Awesome! Since the fund incurs expenses to trade, rebalance, customer service, etc. that itself becomes a main reason for difference between the returns of the benchmark and the index fund. No. of stocks in both the index fund and benchmark are similar. And since the index fund just mirrors the index, you could theoretically pick any index.

This could be tricky! No worries though. Here’s the learning for you. Since the fund incurs expenses to trade, rebalance, customer service, etc. that itself becomes a main reason for difference between the returns of the benchmark and the index fund. No. of stocks in both the index fund and benchmark are similar. And since the index fund just mirrors the index, you could theoretically pick any index fund.

This could be tricky! No worries though. Here’s the learning for you. Since the fund incurs expenses to trade, rebalance, customer service, etc. that itself becomes a main reason for difference between the returns of the benchmark and the index fund. No. of stocks in both the index fund and benchmark are similar. And since the index fund just mirrors the index, you could theoretically pick any index fund.

True

That’s right! Tracking error does indeed measure the variation in movements of the benchmark index and the index fund. Together with expense ratio, this becomes a key criterion in selection of index funds.

This must have sounded technical! Tracking error does indeed measure the variation in movements of the benchmark index and the index fund. Together with expense ratio, this becomes a key criteria in selection of index funds.

The 51st to 100th companies ranked as per predefined criteria

You are definitely new to index funds. When the companies listed on the exchange are ranked using a mix of various criteria and a list is made, the top 50 are known as the Nifty 50. The next 50 are known as the Nifty Next 50. In the past, this was also known as the Nifty Junior. You can find out the criteria applied to derive this index companies on Nifty Indices official website.

Bingo! When the companies listed on the exchange are ranked using a mix of various criteria and a list is made, the top 50 are known as the Nifty 50. The next 50 are known as the Nifty Next 50. In the past, this was also known as the Nifty Junior. You can find out the criteria applied to derive this index companies on Nifty Indices official website.

You are definitely new to index funds. When the companies listed on the exchange are ranked using a mix of various criteria and a list is made, the top 50 are known as the Nifty 50. The next 50 are known as the Nifty Next 50. In the past, this was also known as the Nifty Junior. You can find out the criteria applied to derive this index companies on Nifty Indices official website.

You are definitely new to index funds. When the companies listed on the exchange are ranked using a mix of various criteria and a list is made, the top 50 are known as the Nifty 50. The next 50 are known as the Nifty Next 50. In the past, this was also known as the Nifty Junior. You can find out the criteria applied to derive this index companies on Nifty Indices official website.

All of the above

At least, you have 1 reason to invest in an index fund, if you do. Actually, all are true. Index funds are preferred by investors for all of the reasons mentioned. Why bother about alpha or extra returns? Just take the market and focus on lower expenses and that will sail you through.

At least, you have 1 reason to invest in an index fund, if you do. Actually, all are true. Index funds are preferred by investors for all of the reasons mentioned. Why bother about alpha or extra returns? Just take the market and focus on lower expenses and that will sail you through.

At least, you have 1 reason to invest in an index fund, if you do. Actually, all are true. Index funds are preferred by investors for all of the reasons mentioned. Why bother about alpha or extra returns? Just take the market and focus on lower expenses and that will sail you through.

You got the bull’s eye. Index funds are preferred by investors for all of the reasons mentioned. Why bother about alpha or extra returns? Just take the market and focus on lower expenses and that will sail you through.