What is Index Funds in mutual fund
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Index funds replicate the portfolio of a particular index such as the BSE Sensitive Index (Sensex) or the NSE 50 Index (Nifty). These schemes invest in securities in the same weightage of an index. 

 

NAVs of such schemes rise or fall in line with the rise or fall in the index, though not exactly by the same percentage due to some factors known as 'tracking errors' in technical terms. 

 

Necessary disclosures for such schemes are available in their offer documents.

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