Index Funds Vs ETFs: What is The Difference and Which is Better?

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First, I’ll explain what prompted me to explore the idea of index funds vs ETFs. Both are very similar products. But I wanted to know that for people like me, who like stocks, ETF is the first choice. But what is the logic behind this preference? I wanted to record it in black and white, hence […]

How Beginners Can Use Index Investing To Invest In The Stock Market?

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Before we get into index investing, we must know about the stock index. An index highlights changes in the collective value of a group of stocks over time. It is an indicator that highlights the performance of the entire market or a specific portion of the market (sector, theme). If there is a group of stocks, like a portfolio, the price of its components is […]

Investment Diversification: Take Less Risk, Earn High Returns

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Diversification: Including different types of non-related assets in portfolio is called investment diversification. It is a strategy to minimize the risk of loss in case of unpleasant price movements. Example: Suppose you bought stocks in the past for Rs.50,000. As on today, the price of this stock is down 5%. In the same period, you […]

Which is better – Index Funds vs Actively Managed Funds [2021]?

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In last decade, index funds have gained lot of popularity. What makes index funds attractive is their low cost. Compared to actively managed funds, index funds has lower expense ratio. ‘HDFC Index Fund – Sensex’ is one of the better index funds. It has an expense ratio of 0.3% (Regular Plan), and 0.1% (Direct Plan). […]

Are Debt Funds Good for small investors?

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Are debt funds good investment vehicle for small investors? If you would have asked this question me few years back, my answer would had been no. But now, I will advice my readers to include debt funds in investment portfolio. In this article I will share my personal realisations about debt funds. In India, people […]