What Are Index Funds and How Do They Beat Active Fund Managers?

What Are Index Funds and How Do They Beat Active Fund Managers? For investment in fixed income investments visit: - Understanding basics of Fixed income investments ESG Investing:- Why ESG Investing is gaining Popularity Introduction Investors in India often face a crucial decision: should they invest in actively managed mutual funds or opt for index funds? Index funds , which track market indices like the Nifty 50 or Sensex , have gained popularity due to their lower costs and consistent performance over the long term. But how do these funds compare to actively managed ones? More importantly, how do they often outperform active fund managers? Let's explore. What Are Index Funds? Index funds are mutual funds or exchange-traded funds (ETFs) designed to replicate the performance of a specific market index. Instead of being actively managed by a fund manager, they follow a passive investment strategy, holding all or most of the securities in the index they track. Key Char...