ఇండెక్స్ ఫండ్ అంటే ఏమిటి?

If you want to invest in equity mutual funds but are not confident about the abilities of the fund managers, index funds are a good option for you. Index funds are equity funds that replicate a particular equity index by investing in the stocks that the index tracks.As each stock has different weightage in an index, the portfolio of an index fund is also allocated in a way to mirror that of the index. For example, if Reliance Industries has a weightage of 10% in an index, a fund based on the index would also allocate 10% of its portfolio to the stock.