Index funds with a good track record and low tracking error are safe bets. : Index funds are synonymous with low-cost. When ace investor Warren Buffett talked about them, he used the term “low-cost" when he mentioned index funds. Recently, Sachin Bansal-backed Navi Mutual Fund launched the Nifty 50 Index Fund. One key highlight of the fund is that it will charge 0.06% as the total expense ratio. Investors must look at the expense ratio of an index fund when choosing one. But they should not entirely base their investment decision on costs associated with an index fund.
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