Previous Performance Of Index Funds
Investors who want to create a mutual fund portfolio without consulting the financial advisor could pick Index funds. These are formally known as passively-managed schemes. Because of these type of funds reflects a passive investment strategy to copy specific norms. Investment advisors also recommended investors to add Index Funds to Portfolios.
A source reveals that recently, the funds made quite considerable in the market. It helps advisors to take it as an instance promoting investors. Maybe following the change in desire for index funds, the assets managed by them have risen over the past couple of months.
As compared to the previous results to the current performance of funds has made an incredible increase in its AUM. In August, the Index Fund AUM had stood at Rs 5,971.84 crore and In September reached Rs 6571.96 crore. In the last month, assets under management of Index funds posted at Rs 7622.61 crore. This type of results represents how much best is add to investors’ mutual fund portfolios.
Wealth Advisors Analysis On Index Funds
When the market has seen corrections in the last one year, actively managed funds have failed to strike the index funds. At that time, investors a decision to check the previous performance of the schemes before selecting a fund to invest while financial advisors or distributors recommended these schemes, said by a financial advisor.
Mutual fund advisors felt that it is the right time to add index funds to portfolios.
Another wealth advisor stated that this type of mutual fund scheme suitable for investors who want to choose low cost and low-risk schemes to invest in. Any mutual fund scheme not possible to beat its benchmarks in the current market position especially in actively managed schemes.
So, mutual fund advisors decided to recommend Index funds to the investors. These funds have moderate advantages. These are low-cost schemes while investors can save 0.5 percent to 1.5 percent of refunds each year. Moreover, the savings become important over a long period.
Disclaimer: This article offers information regarding the expert’s analysis. Recommended schemes and investment tips are given in this article are the expert’s own and not that of the website or its management. MF investments are fixed to market risk. Please consult your financial advisor before invest.