Index investing means maintaining same number of stocks in same ratio as targeted index in your portfolio. Popular index of Indian stock market are sensex, nifty and bank nifty. There are various companies which are listed on different index and it is a tedious job to filter good performing stock from trading point of view among all.
Following are some of its advantages:
1) No need to devote more time in market for analyzing different stocks and their performance.
2) Quality of stocks is assured has they have fulfilled all guidelines stated by SEBI then only they are listed on any particular exchange.
3) It is assured that trader will earn approximately same return as index.
4)Less brokerage cost as with this trading style no frequent buying/selling is involved.
Following are some of its advantages:
1) No need to devote more time in market for analyzing different stocks and their performance.
2) Quality of stocks is assured has they have fulfilled all guidelines stated by SEBI then only they are listed on any particular exchange.
3) It is assured that trader will earn approximately same return as index.
4)Less brokerage cost as with this trading style no frequent buying/selling is involved.