Thread for beginners on Index funds for Long duration
#StockMarket #MutualFund #IndexFund #ETF
Index funds are diversified in nature which minimise risk

All stocks won’t perform for long durations, stocks in index managed based on stock performances in regular basis.
Picture shows Nifty50 stocks are not standard, list altered based on performance

Good current performing stocks will turn to penny stocks in future, Index funds minimise risk in this criteria
Non performing stocks will be moved away from index by SEBI & next performing stocks will b included

Index funds distribution & listed stocks contributions in high level. Moderate to high risk stocks based on different index lists

Portfolio with max Five Funds based on needs & capacity.

Large cap - N50 Index ETF Fund
Midcap - Mid cap 150 ETF Fund
Smallcap - Smallcap 250 ETF Fund
Intl - Nasdaq 100 / SPX500 Fund
ELSS / Hybrid Fund

Index Funds initial purchase varies amount from 1000 to 5000 max.
SIP available minimum 500 with weekly monthly yearly.
Daily also possible as 5 weekly SIP added on each weekday.
SIP to be increased 10% on each year to match inflation

Nifty50 Index - Large cap fund which is moderate risk & in average 5 years gives good CAGR returns

Midcap 150 consists of Micap stocks including Nifty next 50 stocks
This is higher risk compared to Nifty50 index funds

Smallcap 250
High risk High rewards which is purely preferred for longer durations
High risk compared with Midcap stocks

International Funds
Nasdaq 100 High Risk High Returns
SPX500 Moderate Risk Moderate Returns

We have also
China 101 FoF
S&P Euro 350 Index Fund
From India investing in Intl funds are less

ELSS Equity Linked Savings Scheme
Perfect for long duration planning like Child higher education, Child marriage

Fund is 3 years lock period & can be used for 80C Tax rebate

This is not an index fund

Hybrid fund
Consist of different combinations with mix of Equity / Debt / Gold / Bond / Liquid Cash / Infra bonds

This fund helps to hedge your portfolio when Equity market is in correction

This is not Index fund

Now after selecting type of fund, identifying which AMC / Fund house.

Main criteria which fund holds higher AUM money needs to be selected, higher liquidity fund helps during market crash.
Less expense Ratio.
Fund performance vs Index performance.

Always revisit MF portfolio, avoid duplication of funds & select suitable index fund.
Always close fund 6 months prior to the event fund was planned
Index funds complete details are in @NSEIndia & @ValueResearch sites
Follow @IndiaEtfs for index fund updates
Happy investment