In this video, we answer a viewer query on whether index funds can be a long term investment.
Edited highlights
0:18 In this video, we answer the question of Srinu Goduguluri who has asked a question about index funds being a long term investment
1:22 Index funds are great investments for anyone starting out investing
1:27 More or so for people who don't anything about equity investments but want to get its benefits
1:40 Index fund investors effectively bank on the growth of the stock market and the economy which is a very good assumption for a country like India
1:54 Stock market index composition may change but the stock market index has been going up in India
2:53 Stock market index composition may change but the stock market index has been going up in India
3:12 You also don't suffer as a result of fund manager decisions
3:23 In a growing economy like India, there are pockets of opportunity available for fund managers to tap
3:41 At the same time, the average returns from equities that index funds give can be adequate for first time investors
4:14 Once you have got to equity investing from index funds you can invest into actively managed funds
4:23 These could be large-cap funds, mid-cap funds or thematic funds
