Mutual funds serve as one of the most reliable tools for investment that investors can select apart from stocks and ETFs. Catering to every form of investor whether beginner or experienced, mutual funds are available in various types like regular, direct, thematic, etc that investors can select based upon their preference and financial goals.
Index mutual fund is one such type that is best known for its simplicity, and safety. Managed by dedicated asset management companies, the index mutual funds help with long-term wealth generation through systematic investments. One such company is the ICICI Mutual Fund which offers various index mutual fund schemes after thorough research and analysis. Being a well-established company with years of positive track record, ICICI mutual fund can deliver the best index mutual fund schemes that investors can opt for.
What are index mutual funds?
As evident from its name, Index Mutual Funds India track the performance of a particular index like Nifty 50 and invest in the respective stocks as well. Serving as a more streamlined investment vehicle, index mutual funds invest in the same stocks as that of an index and in the same proportion as well.
Advantages for selecting ICICI mutual fund for index mutual fund investment
ICICI Index Mutual Funds are known for their low expense ratio. Unlike an actively managed mutual fund, index mutual funds up by ICICI Mutual Fund Company do not require active management which in turn reduces the expense ratio. With a low expense ratio, investors get to keep the maximum portion of their returns with themselves thereby making ICICI Index Mutual Funds a cost-effective investment solution.
ICICI index mutual funds involve investment in the same stocks and in the same proportion to that of a corresponding index. For example, in the Nifty 50 Index mutual fund invest in the same stocks as listed under nifty 50. Any changes in the index cause similar effect to the NAV of the respective index mutual fund. This in turn delivers stability and offers maximum protection to the investors in case of volatility.
Investors through investment in ICICI mutual funds can diversify their investment by investing in stocks belonging to different sectors like IT, pharmaceuticals, banking, finance, and manufacturing. This offers protection to the investors and helps with wealth generation over a long period.
Due to its streamlined nature, Index mutual friends from ICICI do not require active management and are easy to understand. Investors can opt for systematic investment plans and make regular investments in the ICICI index mutual funds without much research or analysis.
Another benefit of selecting an ICICI Mutual Fund for investing in index funds is the positive track record of the asset management company. With a positive track record of managing index mutual funds, the ICICI mutual fund company can offer protection to risk-averse investors. Moreover, investors received access to well-performing index mutual funds that offer protection from volatility and other negative market effects.
ICICI Mutual Fund Company even appoints professional managers with years of experience and expertise. Through advanced research and analysis, they help in launching the best and most reliable index mutual funds.
Conclusion
Index mutual funds by ICICI Mutual Fund Company offer an extensive number of benefits for every type of investor. From diversification to safety, index mutual funds from ICICI serve as an invaluable tool for long-term wealth generation.