Mutual fund advisors suggest investor add on the index fund to their portfolios

Mutual fund advisors suggest investor add on the index fund to their portfolios

 

Mutual fund advisors are certainly the ones with the treasure of immense information about making a successful mutual fund investment. The rookies of the times might be running out of clue in figuring out the do’s and don’ts while raising investment in the mutual funds. If you are one of them you have landed at the right place.

Mutual fund advisers suggest the addition of the index fund in the portfolios. According to them, there is a passive investment strategy is allowed by the index funds and thus, brings in a cost-effective option for the investors. This article throws light on this argument helping the readers gather detailed information about the right approach to make.

Several advisors make a strong recommendation of including the index funds to the mutual fund portfolio. According to them, the recent performance f the index funds have been tracked and they have resulted to reinforce the case even more precisely. Above all, in the previous couple of months, there has been a perfect reflection of the change in the appetite observed for the mutual funds which have ultimately increased the assets managed by them.

The numbers show it all very clear. The AUM index funds went up from Rs. 5971.84 crore to Rs 6571.96 crores from August to September. There was even a further increase in the number as the AUM of the index funds again increased to Rs. 7622.61 crore in October. The lofty status and the protuberances observed in the AUM is the only result of the newly-found love of the mutual investment advisors for the index funds as we ass the outperformance of it.

In the previous year, numerous index funds have given a blow to the actively-managed schemes as a result of which the market has witnessed a correction. Getting into the process of investment of most of the mutual fund investors, they tend to have a look at the past return to decide on the schemes in which they want to put their money in. The wealth managing firms are all set to adopt the new methodologies of raising investment and making a stronger approach. Are you planning to switch index funds? Then you should do that as it is a smart idea. This can be a perfect bet for you to raise investments an avail lucrative returns.