Index Investing: Pros and Cons
Pros and Cons of Index Investing - By Late Mr. Parag Parikh Shuchi.P.Nahar Index funds are simply mutual funds that attempt to mimic a given market. There are actually many more than that tracking many different markets of all shapes and sizes, but each one shares the same basic principle: Its goal is simply to match that particular market’s return. Index investing is therefore simply the process of using index funds to build a passive investment strategy. Index investors decide which markets they want to invest in, how much of their money to put in each one, and utilize index funds to put that plan in place. What is market? Where do you see the market going? how is market judged? By what the index is judged? These are some of the basic questions that every investor asks sooner or later in his investment journey . If the index is up that means that the market is up, sometimes you may find the market is going up but your portfolio has not increased or decreased. ...