Know This Before Investing In Index Funds || Index Investing Explained

Know this before Investing in Index Funds you should know the difference between index fund and equal weight index fund.

The easiest option to invest in stocks is to buy an index mutual fund. So for example, Nifty 50 index fund which gives you top 50 stocks in 1 single mutual fund.

But the problem is that if you invest 1 lakh in a nifty 50 index fund, you are investing almost 60,000 in top 10 stocks. Remaining 40 stocks will only get limited investment.

If you don’t want to invest BIG part of your money only in top 10 stocks, you should consider Nifty 50 Equal weight index mutual funds. Because in this index fund, your money will get invested almost equally in all 50 stocks.

So if you are investing 1 lac, all 50 stocks will get 2% allocation.

But which one is better?

#investingforbeginners #indianstockmarket #mutualfunds

DISCLAIMER:

PLEASE NOTE that I AM NOT A SEBI REGISTERED ADVISOR SO please do your own research. This video is only for education and entertainment purposes.

On my channel, there are few more interesting videos that you watch:

🚀💥 How To Make 1 Crore in 10 Years?

🚀💥 BEST ELSS Mutual Funds

🚀💥 Invest your first 1 Lakh Rupee in Stocks for beginners:

🚀💥 How to select mutual funds for beginners:

🚀💥 Difference between Indian ETFs and US ETFs:

🚀💥What is an Index Fund and how to invest in Nifty 50 Index Fund

🚀💥My financial Plan 75 Lacs by 2030:

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[anindasundarroy]

Thanks Rahul…these are really valuable suggestions🙏

[maheshmoharir]

Thanks Rahul Sir really an eye opener.

[santhoshcs]

Good information indeed regarding index fund

[svnrm]

Rahul Sir, your insights are always fantastic. Your videos are really educative. Please make videos on these two topics: A). when/how to book profits and reinvest? Profits can be sudden bulk as in case of Equal weight Index fund during bull phase within a year and profits can be good over longer period of say 3-5-7 years. B) Ideal portfolio guideline for a retired person with adequate corpus to lead life but wants to invest in MFs in parallel for better appreciation of capital say 10, 000 p.m. Thanks and Regards.

[abhishekparida]

This is a very good strategy to test in real market conditions. Thanks for the insights. I don't want to invest in Reliance but Nifty 50 doesn't give a choice. With this my money will be equally distributed. Thanks again never would have thought about this if I keep on Consuming Top finance youtuber channels LOL

[mohammedjunaid]

Dear sir. I am a novoice when it comes to investing and I have just started my investing journey.

I wanted to appreciate you for making great videos on stock market and as always ur videos are easy to understand to a novoice like me and you decently give us great knowledge with even the smaller nittycrities .

Thanks a lot, I hope u will continue giving us great videos.

always looking forward to your videos

As always god speed. Take care

[smwsfst]

I was learn to invest equal weight index funds 🎉🎉🎉🎉🎉

[singaramsingaram]

Hi Rahul, can you Pl share that Value Research article that you spoke about in the video? Thanks for another great video!

[kalyanbaddireddy]

Hello Rahul, please make a video on difference between smallcase and ETFs

[logeshwarans]

Hi sir pls compare Midcap funds and do a video.similar to what u did for small cap

[subhasisbandyopadhyay]

What about nifty 50value 20? As per market data from nse over 10 yeats, n50v20 does better than n50

[kingkatz]

When you compare it with nifty 200 momentum 30 index fund, it was better than dsp nifty 50 equal weight index fund….specially in a bull market.

[srinivasansm]

Market capitalization and Equal weight index are same only in terms of longer term investment.

[nizamuddinshaik]

Hi Rahul, Pls advise which is best for index fund SIP or lumpsum

[rushikesh]

Hi,
What if we compare highly aggressive mutual funds over index funds like hdfc mid cap opportunities

[garkish]

Thank you Rahul. I started my SIP in DSP NIFTY Equal Weight Index Fund after watching your video. I always was worried that most of my investment is going towards top ten companies. This fund is what I needed at this right time. Should I keep investing in NIFTY ETFs via my trading and demat account?

[xfghsthsh]

How about investing in etf? Nifty bees.

[KMaji]

No clear cut advantage of equal weight fund over nifty 50. Choosing two funds in a portfolio complicates things. When the market crumbles, both behave equally. Only higher expense is constant for factor based funds.

[gourabchakraborty]

Hello Rahul, can you give some insights on SBI FOCUSED EQUITY FUND ??? I'm personally invested in this fund from last 5 years and getting 13% xirr. Earlier it used to be a top performer but in recent times performance has been bad. I'm continuing sip.
Please give your thoughts on this.

[sarahgrindle]

Ever since i started trading with her I have been withdrawing and seeing profits thanks for your great work and God bless you more..from Slovenia..