A passive fund mimics the returns of a specific index (equity index or debt). The first is the Nifty Midcap 150, which represents the full mid-cap market segment; the index shows up well against even active mid-cap equity funds. The available BSE mid-cap index funds do not compare well in returns against the Nifty Midcap 150. Finally, you can hold the U.S. market through index funds built on the Nasdaq 100 and the S&P 500. Points to noteIn choosing index funds or ETFs, it’s important to check how well the fund/ETF mimics the actual index return (called tracking error).

Source: The Hindu June 06, 2021 17:58 UTC