Business News›Wealth›Invest›What is a total market index fund and should you invest in stocks via this type of mutual fund?
What is a total market index fund and should you invest in stocks via this type of mutual fund?
Synopsis
Till now, investors seeking broad market exposure under one umbrella could invest in any fund tracking the Nifty500 index, which, however, leaves out stocks belonging to the microcap segment. This is where the total market index comes in.
Do you wish to bet on the entire stock market, without nitpicking any market cap segment or theme? You can soon do that. Navi AMC has become the first to file for a total market index fund—which puts money in stocks across the entire market capitalisation spectrum of large-, mid-, small- and also micro-cap companies. Is a total market index fund enough for well-rounded equity exposure? The past year has shown that broad market exposure can make
