Index Funds that track factor-based indices have grown in popularity in India in recent years. Currently there are a number of indices that select stocks based on factors such as quality score, momentum score, value score, Jensen’s Alpha or various combinations of these.

In the meantime, use of factors such as free cash flow yield and dividend yield to build indices are as of yet relatively less common. This is where, the Axis Max Life Sustainable Yield Index offers a unique stock selection opportunity that can help prospective investors grow their wealth by tapping into a relatively untapped basket of stocks. Read on to know details about this customised index and how to invest in the Axis Max Life Sustainable Yield Index.

Some investors are always seeking out new ways to gain an edge over others in an attempt to reach their investment goals faster. One of the emerging strategies currently gaining popularity involves combining different existing strategies and one example of this is the Multicap Momentum Quality Index. The Nifty 500 Multicap Momentum Quality 50 Index is designed to track the performance of a basket of 50 stocks across different market capitalizations that feature the highest momentum-quality score. Let’s take a closer look at some key details of this index.

When it comes to securing your financial future, the National Pension System (NPS) is undoubtedly one of the safer or next-to-nil risk investment options. As the name suggests, NPS or National Pension System primarily provides for the subscriber’s retirement benefits. That said, the NPS Tier II account (a voluntary option) offers a combination of liquidity, flexibility, and the potential for growth, making it an attractive avenue for those who seek.

In this article, we delve into the benefits of investing in an NPS Tier 2 account, unpacking its features and the advantages it holds over other investment vehicles.

A majority of passively managed funds in India track an equity index, however, one can invest in debt instruments passively too. One such type of mutual fund is a Target Maturity Fund that can be defined as passive debt mutual fund that tracks an underlying bond index. Since the underlying asset class are various debt instruments like PSU (Public Sector Unit) bonds, government securities, state government loans, etc., these are considered as relatively low risk investments as compared to pure equity-oriented schemes. Read on to find out more about target maturity funds to determine if they are a suitable investment option for you.

Index Funds and exchange traded funds (ETFs) are common examples of investments where fund managers replicate a certain benchmark index in terms of the investment portfolio with the intent of mirroring benchmark returns. This style of investing which does not involve active stock picking or actively buying and selling ETFs is termed as passive investing. While both ETFs and index funds belong to the same passive investment category, there are significant differences between them.

In this article, we shall have a detailed discussion on differences between Index Funds vs ETFs to help you decide which investment option is better suited to your needs.