passive investing , or index fund investing is based on the fact that no fund manager has been able to beat the stock market returns consistently

so , instead of paying them commission fees , exit and entry load , management fees , and a whole load of other fees – which ultimately reduces your corpus at the end , you are better off investing in a low cost index fund that replicates the stock market index

the index fund would be efficient as well -since the stocks not doing well get removed and good ones get added to the index from time to time

this is called passive investing and it is gaining popularity elsewhere after catching on in usa and europe

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