- Date : 22/08/2023
- Read: 2 mins
How can index investing help you achieve your financial goals? Learn from the top Nifty indexes that outperformed the market in 2023. Read the complete article to know more.
If you want to invest in the stock market without getting confused by too many choices and tips, index investing might be for you. Index investing is a simple and effective way of investing in a group of stocks that follows a specific market index. This way, you can diversify your portfolio, lower your risk and enjoy steady returns. In this article, we will look at the performance of the top Nifty indexes in 2023, which are the benchmark indexes of the NSE, and see how they can help you achieve your financial goals.
Highlights:
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Index investing: Simple, effective way to invest
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Benefit from stable, diversified index returns.
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Nifty Midcap 50: Impressive YTD performance (24.62%)
Also Read: Have You Been Investing in Nifty Next 50 Index Funds Correctly?
Index investing is a low-cost, diversified strategy that can help investors capture the market returns without actively picking stocks. It is suitable for investors who prefer a passive approach and do not have the time, skill, or interest to research individual stocks. However, index investing also has some challenges, such as market risk, liquidity risk, and tracking error.
Index Investing: Pros and Cons
If you want to invest in the stock market without hassle, index investing might be for you. Index investing is a simple way of investing in a fund that copies a specific market index. The fund manager adjusts the fund to have the same stocks as the index. Index funds are cheap, diversified, and passively managed, but they are not risk-free. They can also lose value, be hard to sell, and not match the index perfectly.
Performance of Nifty Indexes in 2023
(Source: Google Finance)
Top Index Funds Available
Given below are a few top index funds. These have been shortlisted based on AUM (at least INR 1000 crores), age of fund (at least more than 3 years).
(Source: https://www.fincash.com/)
Also Read: Is it time to move from active funds to index funds in India?
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.
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