authors
Priya Wankhede, Trupti Anil Vaddepalli and Kshitij Ghanashyam Sawant

abstract
Index mutual funds are prevalent passive investment instruments that aim to imitate the performance of market indices such as the S&P 500 or the Nifty 50. In contrast to actively managed funds, they provide investors inexpensive, extensive market exposure via a varied portfolio of assets that align with the elements of the selected index. This paper examines the performance indicators, risk considerations, and advantages of index mutual funds, which significantly contribute to long-term portfolio diversification and wealth accumulation. Highlighting India's changing financial landscape, we examine investor sentiments and behaviors about the use of index funds in developing markets.