What Are Index Funds?

What Is Meant by Index Funds?

What Are the Different Types of Index Funds?


Read the table attentively and you will learn about different types of index Funds.

Types of Index Funds


International Index Funds

International or Global funds offer investors an international exposure where they can buy funds that monitor specific indexes and are not restricted to any geographical region in the frontier market.

Broad Market

Funds belonging to this segment operate on a broad level and capture a wide range of markets. These types of funds have low expense ratios. Asset sales in this type passive mutual fund are small and tax-efficient. Investors looking for an investment instrument that holds a variety of shares and bonds can invest in Broad Market.

Bond Based Index Funds

This type of index funds investment can help investors in maintaining a perfect combination of short, intermediate and long term bond maturities and earn a steady income.

Market Capitalization

Investors who are willing to invest for the long term can benefit from heightened exposure to small and medium cap enterprises. Index funds can fulfil this objective on the basis of market capitalization.

Earnings Based

Index funds can function depending on the profits or earnings of a company. Here, two types of indexes are related to companies. These are growth index and value index. The Growth indexes refer to those where businesses can expect a return quickly than others in the market. On the other hand, value indexes comprise stocks that trade at reduced cost when compared to the earnings of a company.

How Do Index Funds Work?

What Are the Benefits of Index Funds?

Returns from Index Funds


Follow the table mentioned below to get a clear idea about the returns from Index funds.

Index Fund

5 Year Return

Quant Active Fund Growth


ICICI Prudential Smallcap Fund - Direct Plan- Growth


ICICI Prudential Smallcap Fund


DSP Flexi Cap Fund Direct Plan Growth


SBI Contra Fund- Direct Plan- Growth


Who Should Invest in Index Funds?

How to Invest in Index Funds in India?

What Are the Things to Consider Before Investing in Index Funds?

Frequently Asked Questions