What is Index Fund? — Meaning, Definition & Example
Definition
An Index Fund is a passive mutual fund that replicates the composition of a market index like Nifty 50, Sensex, or Nifty Next 50. It aims to match the index returns rather than beat it. Index funds have very low expense ratios (0.1-0.5%) and are ideal for long-term investors.
Investing ₹10,000/month in a Nifty 50 Index Fund for 20 years at 12% average returns could grow to approximately ₹1 crore.
🇮🇳 Index Fund in Hindi / हिंदी में
इंडेक्स फंड — इंडेक्स फंड एक पैसिव म्यूचुअल फंड है जो निफ्टी 50, सेंसेक्स जैसे बाजार इंडेक्स की नकल करता है। इसका लक्ष्य इंडेक्स रिटर्न से मिलान करना है, न कि उसे पीटना।
Index Fund (Hinglish) — Index Fund ek passive mutual fund hai jo Nifty 50, Sensex jaise market index ko replicate karta hai. Bahut kam expense ratio (0.1-0.5%) hota hai aur long-term ke liye best hai.