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If you reached this post without understanding what an Index Fund is and why one has to look into it seriously as an investment choice, please read, Whats an Index Fund followed by Index Fund Sahi part1 , part2 , part3

Assuming you have digested the above articles and feel confident based on your own logical reasoning capabilities, let us see which is the easiest way to start investing in Index Fund.

As explained in my earlier posts , the goal is to choose a fund with the least Expense Ratio ( why ? , read here ) . The Mutual Fund with the least expense ratio as of today is from UTI with an expense ratio as low as 0.1%. I feel 0.1% is still high, given the fact that the Fund House has to just blindly track the Index ( Nifty in our case ) .

Let’s get started ?

Step 1 : Create an account at https://www.utimf.com/

Step 2 : Watch the video 🙂

Things to remember while filling the form

Regular or Direct ?

Always choose Direct , as you are an individual and Direct has less expense ratio.

What Funds to invest in?

The idea is to invest in top 100 companies in India , Hence choose

1.UTI Nifty 50 Direct Growth , put 70% of your SIP into this…

2. UTI Nifty Next 50 Direct Growth , put remaining 30% of your SIP into this…

To sum it up , if you plan to put 10,000/- per month as SIP. Put 7k into UTI Nifty 50 and 3k into UTI Nifty Next 50.

Should I wait for the current market to go down,seems like its in an all time high and may crash soon ? 

Waiting game is what you are trying to avoid by choosing to do SIP . SIP makes sure that you average out as you buy more when the market crashes and buy less when the market is high. One thing to keep in mind is not stop your SIP if the Market crashes, on the contrary it would be wise to invest more when the market has crashed. Remember that we are playing the long term investor game ( 10 years + ) and should not be worried about the short term fluctuations in the stock market .

There is also an app from UTI which will make the process of tracking and purchasing much easy. A small video from them 🙂 .

Make sure you dont spend time tracking your investment 🙂 , the whole idea of an Index Fund is to put your money in and forget about it. Enjoy your life and spend time with your loved ones !! .

Hope you are all set to begin investing. Please communicate over through comments if you need more help !!

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Please read the disclaimer carefully before making any investment based on the articles published on this Blog !!