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Forex Daily Analysis by kalaivanan


Posted Date on 19-Apr-2014 04:46:12

Stop Loss


First of all, what are index funds? These funds are aligned to a particular benchmark index such as the S&P CNX Nifty, BSE Sensex, or even for that matter a sectoral index such as BSE Bankex. The endeavour of these funds is to mirror the performance of the designated benchmark index, by investing only in the stocks of the index with the corresponding allocation or weightage. Hence, investing in index funds is less cumbersome as compared to investing in actively managed funds. Also they carry with them a low expense ratio along with a low risk (as compared to actively managed mutual funds), making market timing irrelevant. Low portfolio churning also adds to their merit. The fund manager in an index fund exits a certain stock only when a respective stock exits from the index and is replaced by another one.  Recently, it was highlighted how the legendary investor Warren Buffett's Berkshire Hathaway vastly outperformed the stock market during the last 49 years. In comparison, Berkshire's performance in the last 5 years has not been that exceptional. Thus, the article has stated this increased the attractiveness of index funds given that even an experienced investor like Buffett is not able to beat the market. 

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Copyright © 2019 All rights reserved. Version 2.04


Copyright © 2019 All rights reserved. Version 2.04


Copyright © 2019 All rights reserved. Version 2.04