What are Index Funds?

Modified on Wed, 04 Oct 2023 at 03:47 PM

Index funds represent a category of mutual funds designed to track the performance of a designated market index, such as the Nifty50, Nifty IT, or Bank Nifty Index. Their primary purpose is to offer investors comprehensive access to a specific segment of the financial market, rather than portfolios actively managed by fund managers.


The performance of an index fund slightly varies from the respective index/benchmark which is measured as tracking error.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons

Feedback sent

We appreciate your effort and will try to fix the article