In today’s ever-evolving stock market, investors are constantly looking for investment options that offer diversification, stability, and long-term growth. One such lucrative investment avenue is the Angel One Nifty Total Market Index Fund. This fund provides exposure to a broad range of companies across different market capitalizations, ensuring a well-balanced portfolio.
What is the Angel One Nifty Total Market Index Fund?
The Angel One Nifty Total Market Index Fund is a passive mutual fund that aims to track the Nifty Total Market Index (TMI). This index comprises a diverse set of companies, from large-cap to small-cap, offering investors a chance to participate in the overall market’s performance. Unlike traditional index funds that track only large-cap indices like the Nifty 50 or Sensex, this fund captures the potential of mid and small-cap stocks, enhancing long-term growth prospects.
Key Features and Benefits
1. Diversified Market Exposure
One of the key advantages of this fund is its broad market coverage. It includes companies across all market segments, providing investors with a well-diversified portfolio that reduces individual stock risk and enhances stability.
2. Cost-Effective Investment
Since the Angel One Nifty Total Market Index Fund is a passive fund, it has a lower expense ratio compared to actively managed funds. This makes it an affordable option for investors seeking exposure to the entire market without high management fees.
3. Long-Term Growth Potential
By investing in this fund, you are essentially betting on the growth of the entire Indian economy. Over time, as businesses expand and the economy flourishes, the value of this fund is likely to increase, making it a great choice for long-term wealth creation.
4. Lower Risk Through Diversification
Since the fund holds a mix of large-cap, mid-cap, and small-cap stocks, it mitigates risks associated with investing in a single segment. When one sector underperforms, others can balance the impact, ensuring more stable returns.
5. Ease of Investment and Liquidity
The Angel One Nifty Total Market Index Fund allows investors to enter and exit with ease. Being an open-ended fund, it provides liquidity, ensuring you can redeem your investment whenever needed.
Why Choose Angel One Nifty Total Market Index Fund Over Other Funds?
1. Broader Market Representation
Unlike Nifty 50 or Nifty Next 50, which focus on specific segments, this fund covers the entire market spectrum, providing an edge in growth potential and risk management.
2. Ideal for Passive Investors
For those who prefer a hands-off approach, this index fund eliminates the need for constant stock selection and management, as it mirrors the market.
3. Lower Expense Ratio
Compared to actively managed funds, this index fund has a lower cost structure, ensuring higher net returns over time.
How to Invest in Angel One Nifty Total Market Index Fund?
Investing in this fund is easy and can be done through Angel One Limited, a leading stockbroking and investment firm. Follow these simple steps:
- Open a Demat and Trading Account with AngelOne. https://a.aonelink.in/ANGOne/e8L5CJ5
- Visit the Mutual Fund Section on the platform.
- Search for Angel One Nifty Total Market Index Fund.
- Select the Investment Amount and Mode (SIP or Lump Sum).
- Confirm the Transaction and start your investment journey.
Who Should Invest in This Fund?
- Long-Term Investors looking for stable and diversified growth.
- Passive Investors who prefer a market-linked, low-cost investment.
- Beginners seeking broad market exposure with minimal effort.
- Experienced Investors wanting to complement their portfolio with an all-encompassing index fund.
Tax Benefits and Considerations
- Investments held for more than one year are subject to LTCG tax of 10% on gains exceeding ₹1 lakh.
- Short-term investments (less than one year) attract STCG tax of 15%.
- SIP investments qualify for tax-efficient long-term growth.
Conclusion
The Angel One Nifty Total Market Index Fund is a game-changer in the world of passive investing, offering unparalleled market exposure at a low cost. With its diversified portfolio, risk mitigation, and potential for long-term wealth creation, it is an ideal choice for both beginners and seasoned investors. If you are looking for a hassle-free investment that grows with the Indian economy, this fund should be on your radar.
Start investing today with Angel One and take a step towards financial freedom!
