Other Funds

Index Funds

Index funds create a portfolio that mirrors a market index.

• The securities included in the portfolio and their weights are the same as that in the index
• The fund manager does not rebalance the portfolio based on their view of the market or sector
• Index funds are passively managed, which means that the fund manager makes only minor, periodic adjustments to keep the fund in line with its index. Hence, Index fund offers the same return and risk represented by the index it tracks.
• The fees that an index fund can charge is capped at 1.5%
  Investors have the comfort of knowing the stocks that will form part of the portfolio, since the composition of the index is known.
  

  Fund of Funds (FoF)

  • Fund of funds are mutual fund schemes that invest in the units of other schemes of the same mutual fund or other mutual funds.
  • The schemes selected for investment will be based on the investment objective of the FoF
  • The FoF have two levels of expenses: that of the scheme whose units the FoF invests in and the expense of the FoF itself.