Index funds — which track performances of widely traded indices, such as the Nifty and the Sensex — saw a fourfold jump in inflows in March.
Last month, such funds received inflows to the tune of Rs 2,076 crore, as against Rs 511 crore the previous month.
“In a dipping market, where it is difficult to pick the right equity fund, index funds are suitable for investors with a long-term view and those wanting to make returns at par with the markets,” said Vidya Bala, co-founder, primeinvestor.in “Also, it is easier to average with index funds, as investors can track corrections in the frontline indices, such as the Nifty and the Sensex.”
