An index is a group of securities defining a market segment. These securities can be bond market instruments or equity-oriented instruments like stocks. Some of the most popular indices in India are BSE Sensex and NSE Nifty. The stocks associated with these indices are viewed as reliable because of their low volatile nature.
The profit is gradual but still, investors invest in these funds because of the security & low expense incurring funds as they are not actively managed funds & perform in accordance with the index which they are associated in.
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