The Lazy Reader

Index funds are a type of mutual fund or exchange-traded fund (ETF) that aim to replicate the performance of a specific market index, such as the Nifty or Sensex. They are passively managed, meaning they do not try to beat the market, but rather aim to match its performance. Index funds are considered a low-cost alternative to actively managed mutual funds because they do not require the same level of research and analysis and therefore have lower expense ratios. Lower Cost Investing or trading in the stock market involves costs such as brokerages and taxes that must be paid by the investor or trader. Active mutual funds generally have higher costs due to a larger number of transactions. On the other hand, index funds, which are passively managed, have lower costs. It is easy for investors to purchase ETFs through their broker's platform and they only need to pay standard brokerage and taxes on the initial investment. There are no additional yearly expenses required. Diversificatio