Top 7 Index Mutual Funds With Highest SIP Returns in 3 Years: Index mutual funds are passive funds that follow an index. The index can be Nifty 50, Nifty Next 100, Nifty Mid Cap 100, Nifty Small Cap 100, BSE 500, etc. The fund manager of an index fund buys the same stocks for it as there are in the index that the fund follows. Once the index reshuffles stocks, the fund manager also does the same for the fund. Since the manager doesn’t need to do much research for changing stocks, index funds come with a low expense ratio. For mutual fund beginner investors, index funds can be an easy choice since they are practically investing in an index and they don’t have to do much due diligence. The equity mutual fund category is very highly risky, and only investors with a long-term investment horizon should invest in such funds.
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