In an Index fund, the fund manager simply follows an index. It's "passive". Compare that to an “active” fund, the fund manager thinks deeply and decides which stocks to buy, . In this video, learn about passively managed index funds.

You pick index funds thinking: "since the fund manager doesn't have to pick stocks, the only difference is fees. So the lower expense ratio should win?".

That's just wrong. In India, expense ratios that the mutual fund states are useless. What if we told you that index funds in India have much higher "real" expenses. What's hidden from you are brokerage costs, inefficient execution, timing problems and in general, costs that funds don't have to tell you about. But it shows in their (under)performance.

What matters is the “Real Expense Ratio”, and you won’t find that on the fund factsheet, and definitely not in the marketing presentation.

All you need to know to pick a Nifty Index Fund
0:00 - Introduction
1:01 - What are index funds?
3:34 - Difference between Nifty 50 & Nifty TRI
7:51 - How to calculate the real expense ratio of an Index Fund?
19:58 - Which is the best Index Fund to Invest in?

Read: The Best Nifty Index Fund - [ Ссылка ]

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