Can Index funds make you millionaire True or False?
Index funds are based on a benchmark index instead of some selected company. As the benchmark index increase year by year your wealth grow and index funds make you millionaire.
Index funds are types of mutual funds that invest in particular index I.e. Nifty 50, Nifty bank and more.
The money invested in index funds gets invested in all stocks of the index proportionally as the index has in the stock market.
Benefits of investing in index funds
You can easily get started in the mode of SIP or lumpsum
Performance of the fund can easily check and tracking daily
There are fixed perimeter of investing, not each and every stock is needed to be checked.
Index funds are less volatile as compared to other mutual funds
When to get started with index fund
Yes, Of course! Start with your first salary. Choose a proportion you can set aside for future planning.
Don’t forget to increase investment each and every year as the income increases.
Never stop SIP while stock market boom or decline. Prices of stock are volatile; they change each and every moment. Rest assured, contact a financial advisor before investing and every time the stock market trumble.
How to choose the right fund?
Always invest in a fund that contain stock of big company, blue chip comes
Every funds has its own expenses criteria, compare the fund and decide which one is best for next three to five years
Get help from a financial advisor or mutual fund distributors if you can afford it.
What you can get by investing in index funds
A long-term corpus that can be needed for emergency corpus, children education or bearing some accidental expenses.
You save time and also money which you have to waste every time contacting a financial planner.
You become debt free in the next few years.
Also become a millionaire in ten to fifteen years.