Index fund
A mutual fund that copies an index such as the Nifty 50, instead of picking shares.
It holds the same shares in the same proportions as the index, so it matches the market's return minus a small cost, with no risk of a fund manager doing worse than the market.
Expense ratios are among the lowest of all funds.
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Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.