{"id":6474,"date":"2026-03-19T07:38:12","date_gmt":"2026-03-19T07:38:12","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=6474"},"modified":"2026-03-20T05:28:14","modified_gmt":"2026-03-20T05:28:14","slug":"index-etfs-a-low-cost-way-to-grow-with-the-market","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/index-etfs-a-low-cost-way-to-grow-with-the-market\/","title":{"rendered":"Index ETFs: A Low-Cost Way to Grow with the Market"},"content":{"rendered":"<p>What if investing in the stock market didn\u2019t start with the pressure of picking the right stocks?<\/p>\n<p>For most new investors, that\u2019s the first hurdle. You open an app, see hundreds of companies listed, and immediately wonder: Which stocks should I buy? Which ones will grow? What if I pick the wrong ones?<\/p>\n<p>The truth is, stock selection can feel overwhelming, even for experienced investors. Markets move unpredictably, trends shift quickly, and not every \u201chot tip\u201d plays out the way you expect.<\/p>\n<p>But what if there was a way to skip this constant decision-making altogether?<\/p>\n<p>What if you didn\u2019t have to identify winners, track individual companies, or worry about timing the market, and could still participate in its overall growth?<\/p>\n<p>That\u2019s exactly where <a href=\"https:\/\/www.paytmmoney.com\/blog\/index-etfs-your-ticket-to-effortless-wealth-building\/\"><span style=\"color: blue;\">Index ETFs<\/span><\/a> come in.<\/p>\n<p>Instead of trying to beat the market by picking a few outperformers, Index ETFs take a simpler and more disciplined approach: they aim to replicate the market itself. By tracking widely followed indices like the Nifty 50 or Sensex, these funds allow you to invest in a broad basket of leading companies, all at once.<\/p>\n<p>The idea is straightforward but powerful: if the market grows over time, your investment grows with it.<\/p>\n<p>In this guide, we\u2019ll break down everything you need to know about Index ETFs, including:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">What an Index ETF actually is<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">How it works in practice<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Why it\u2019s considered a low-cost investment option<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">And whether it fits into your investment strategy<\/li>\n<\/ul>\n<h2><b>What is an Index ETF?<\/b><\/h2>\n<p>An Index ETF (<a href=\"https:\/\/www.paytmmoney.com\/blog\/exchange-traded-funds-etf-investing\/\"><span style=\"color: blue;\">Exchange-Traded Fund<\/span><\/a>) is a type of investment fund that:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Tracks a specific stock market index<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Holds the same companies in the same proportion as the index<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Trades on the stock exchange like a regular stock<\/li>\n<\/ul>\n<h3><b>In simple words,\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">An Index ETF is a low-cost investment that mirrors the performance of a market index and can be bought or sold on the stock exchange.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, a Nifty 50 ETF invests in all 50 companies in the Nifty 50, so your returns closely match the index.<\/span><\/p>\n<h2><b>How Do Index ETFs Work?<\/b><\/h2>\n<p>Index ETFs follow a passive investing strategy, meaning they don\u2019t try to outperform the market.<\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how they work:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ETF selects an index (e.g., Nifty 50)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It buys all the stocks in that index<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It maintains the same weightage as the index<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It adjusts holdings when the index changes<\/span><\/li>\n<\/ul>\n<h3><b>Example<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If the Nifty 50 rises by 10%:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your ETF investment will also grow ~10% (minus small costs)<\/span><\/li>\n<\/ul>\n<h2><b>Index ETF vs Index Fund<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">This is one of the most common comparisons for beginners\u2014and an important one. While both options follow a passive investing approach and track market indices like the Nifty 50, the way you invest in them is quite different.<\/span><\/p>\n<div class=\"wp-block-table\" style=\"display: block; width: 100%; overflow-x: auto; -webkit-overflow-scrolling: touch; border: 1px solid #000000; margin-bottom: 5px;\">\n<table style=\"width: 100%; border-collapse: collapse; min-width: 750px; font-family: Arial, sans-serif; font-size: 14px; color: #000000; background-color: #ffffff;\">\n<thead>\n<tr>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff; width: 25%;\">Feature<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff;\">Index ETF<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff;\">Index Fund<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">How you invest<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Bought and sold on the stock exchange like shares<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Invested directly through fund houses (AMCs)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Pricing<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Real-time market price during trading hours<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Calculated once daily (NAV)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Minimum investment<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Cost of one unit (e.g., ~\u20b9250 for Nifty BeES)<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Can start small via SIP (often \u20b9100 &#8211; \u20b9500)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Liquidity<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">High, can trade anytime during market hours<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Transactions processed at end of day NAV<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Demat account<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Required<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Not required<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div class=\"md:hidden lg:hidden xl:hidden\" style=\"text-align: center; margin-top: 10px; margin-bottom: 20px; font-size: 13px; color: #666666; font-family: Arial, sans-serif;\">\u2190 Swipe horizontally to see the full comparison \u2192<\/div>\n<style>\n    @media screen and (min-width: 768px) {<br \/>        .md\\:hidden {<br \/>            display: none !important;<br \/>        }<br \/>    }<br \/><\/style>\n<h3><b>What This Means for You<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Both Index ETFs and Index Funds aim to deliver market-linked returns, but they cater to slightly different investing styles.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Index ETFs offer more control and flexibility. You can buy or sell them anytime during market hours, just like stocks, often at a lower cost.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.paytmmoney.com\/mutual-funds\/investment-ideas\/index-funds\/3b47e748-ee39-430c-9df1-d8fdb4077719\"><span style=\"color: blue;\">Index Funds<\/span><\/a>, on the other hand, are more hands-off. They\u2019re ideal if you prefer disciplined investing through SIPs without needing a demat account.<\/span><\/li>\n<\/ul>\n<p><b>Key Takeaway<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Choose Index ETFs if you want flexibility and lower costs<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Choose Index Funds if you prefer SIP-based investing<\/li>\n<\/ul>\n<h2><b>Why Are Index ETFs Considered Low-Cost Investments?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">One of the biggest advantages of Index ETFs is their cost efficiency. Since they follow a passive strategy and simply replicate an index like the Nifty 50, they avoid the need for active stock selection. This significantly reduces management costs, which is reflected in their lower expense ratios. Over time, even a small difference in costs can have a meaningful impact on overall returns, as more of your money stays invested and compounds.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This cost advantage comes from a few key factors:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>No active management:<\/b><span style=\"font-weight: 400;\"> No fund managers actively picking stocks, which keeps fees low<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lower expense ratios:<\/b><span style=\"font-weight: 400;\"> Typically much cheaper than actively managed funds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Minimal portfolio churn:<\/b><span style=\"font-weight: 400;\"> Fewer changes in holdings mean lower transaction and operational costs<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Together, these make Index ETFs a practical option for investors looking to keep costs low while staying aligned with market performance.<\/span><\/p>\n<h2><b>Key Benefits of Index ETFs<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Index ETFs are designed to simplify investing while offering broad market exposure. By tracking established indices like the Nifty 50 or Sensex, they allow investors to participate in the overall market without the complexity of selecting individual stocks. This makes them especially appealing for those looking for a straightforward, cost-efficient way to build wealth over time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some of the key benefits include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Instant diversification:<\/b><span style=\"font-weight: 400;\"> A single investment gives you exposure to multiple companies\u201450 in a Nifty ETF or 30 in a Sensex ETF<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Market-linked returns:<\/b><span style=\"font-weight: 400;\"> Instead of trying to outperform, you track the market, reducing the risk of poor stock selection<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Transparency:<\/b><span style=\"font-weight: 400;\"> Holdings mirror the index, so you always know where your money is invested<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Liquidity and flexibility:<\/b><span style=\"font-weight: 400;\"> Traded like stocks, allowing you to buy or sell anytime during market hours at real-time prices<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Built for long-term investing:<\/b><span style=\"font-weight: 400;\"> Well-suited for beginners, passive investors, and those focused on steady wealth creation<\/span><\/li>\n<\/ul>\n<h2><b>Things to Consider Before Investing in Index ETFs<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">While Index ETFs are simple, there are a few important concepts:<\/span><\/p>\n<ul>\n<li><b>Tracking Error: <\/b><span style=\"font-weight: 400;\">This measures how closely the ETF follows the index. <\/span><span style=\"font-weight: 400;\">Lower tracking error = better performance alignment<\/span><\/li>\n<li><b>Liquidity: <\/b><span style=\"font-weight: 400;\">Some ETFs may have low trading volumes, affecting ease of buying\/selling.<\/span><\/li>\n<li><b>Demat Account Requirement: <\/b><span style=\"font-weight: 400;\">You need a trading + <a href=\"https:\/\/www.paytmmoney.com\/\"><span style=\"color: blue;\">Demat Account<\/span><\/a> to invest in ETFs.<\/span><\/li>\n<li><b>NAV vs Market Price: <\/b><span style=\"font-weight: 400;\">ETF prices may slightly differ from actual NAV due to market demand.<\/span><\/li>\n<\/ul>\n<h2><b>Popular Types of Index ETFs in India<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Index ETFs are available across different market segments:<\/span><\/p>\n<div class=\"wp-block-table\" style=\"width: 100%; border: 1px solid #000000; margin-bottom: 20px;\">\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 15px; color: #000000; background-color: #ffffff;\">\n<thead>\n<tr style=\"border-bottom: 2px solid #000000;\">\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff;\">Type<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff;\">Example Exposure<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Large-cap ETFs<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Nifty 50, Sensex<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Sector ETFs<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">IT, Banking (Nifty Bank), Pharma<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">International ETFs<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Global indices (NASDAQ 100, S&amp;P 500)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\"><a href=\"https:\/\/www.paytmmoney.com\/blog\/gold-etf-in-india-meaning-taxation-how-to-invest\/\"><span style=\"color: blue;\">Gold ETFs<\/span><\/a><\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Domestic Gold prices<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2><b>Who Should Invest in Index ETFs?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Index ETFs are ideal for:<\/span><\/p>\n<ul>\n<li><b>Beginners: <\/b><span style=\"font-weight: 400;\">No need to pick individual stocks<\/span><\/li>\n<li><b>Cost-conscious investors: <\/b><span style=\"font-weight: 400;\">Low expense ratios help maximise returns<\/span><\/li>\n<li><b>Long-term investors: <\/b><span style=\"font-weight: 400;\">Great for compounding over time<\/span><\/li>\n<li><b>Passive investors: <\/b><span style=\"font-weight: 400;\">No need to actively manage your portfolio<\/span><\/li>\n<\/ul>\n<h2><b>When Should You Avoid Index ETFs?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">While Index ETFs are simple and cost-efficient, they may not suit every investment approach. Since they are designed to mirror the market rather than outperform it, they may fall short for investors with more specific expectations or preferences.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You may want to consider alternatives if:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You aim to significantly outperform the market: Index ETFs are built to match market returns, not beat them<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You prefer SIP-based investing without a demat account: ETFs require a trading and demat account, unlike traditional mutual funds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You\u2019re looking for active fund management: If you want a fund manager to actively select and rebalance stocks, actively managed funds may be more suitable<\/span><\/li>\n<\/ul>\n<h2><b>Conclusion: A Smarter, Simpler Way to Invest<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Index ETFs simplify investing in one powerful way, they remove the need to constantly decide <\/span><i><span style=\"font-weight: 400;\">what to buy<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead, they allow you to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stay invested in the broader market<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Keep costs low<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Build wealth steadily over time<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In a world where beating the market is difficult even for experts, Index ETFs offer a practical alternative:<\/span><\/p>\n<p>Don\u2019t chase the market. Grow with it.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\"><strong>Disclaimer:<\/strong> Investment in the securities market is subject to market risks. Read all the related documents carefully before investing. This content is purely for information purpose only and in no way is to be considered as an advice or recommendation. The securities are quoted as an example and not as a recommendation. Investors are requested to do their own due diligence before investing.<\/span><\/i><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">SEBI Reg No.: Broking \u2013 INZ000240532, Research Analyst \u2013 INH000020086, Depository Participant \u2013 IN-DP-416-2019, Depository Participant Number: CDSL \u2013 12088800, NSE (90165), BSE (6707), MCX (57525), NCDEX (1315), MSEI (85300).<\/span><\/i><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">Registered Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019.<\/span><\/i><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">For complete Terms &amp; Conditions and Disclaimers, visit<\/span><\/i><a href=\"https:\/\/www.paytmmoney.com\/\"> <i><span style=\"font-weight: 400;\">https:\/\/www.paytmmoney.com<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">.<\/span><\/i><\/span><\/p>\n<h2><b>FAQs<\/b><\/h2>\n<div style=\"max-width: 100%; margin: 20px 0; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">\n<style>\n        \/* Hides default browser arrow\/triangle for a clean professional look *\/<br \/>        summary::-webkit-details-marker { display: none; }<br \/>        summary { list-style: none; outline: none; }<br \/>    <\/style>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">1. What is an Index ETF?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">An Index ETF is a fund that tracks a stock market index like the Nifty 50 or Sensex. It invests in the same companies in the same proportion to replicate the index\u2019s performance.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">2. How does an Index ETF work?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">An Index ETF works by passively tracking an index. It holds the same stocks as the index and adjusts its portfolio whenever the index changes, aiming to deliver similar returns.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">3. What is the difference between an Index ETF and an Index Fund?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">The main difference is in how they are traded. Index ETFs are bought and sold on stock exchanges in real time, while index funds are purchased through fund houses and priced once daily.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; pointer: cursor;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">4. Are Index ETFs safe for beginners?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">Index ETFs are considered suitable for beginners due to their diversification and low cost. However, they are subject to market risk, meaning their value can rise or fall with the market.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">5. What are the benefits of investing in Index ETFs?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">Index ETFs offer benefits such as low cost, diversification, transparency, and market-linked returns. They provide exposure to multiple companies through a single investment.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">6. Do Index ETFs pay dividends?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">Yes, some Index ETFs may distribute dividends earned from the underlying stocks, while others reinvest them to grow the fund\u2019s value.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">7. How to invest in Index ETFs in India?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">To invest in Index ETFs in India, you need a demat and trading account. You can then buy ETF units on stock exchanges during market hours, just like stocks.<\/div>\n<\/details>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What if investing in the stock market didn\u2019t start with the pressure of picking the right stocks? For most new investors, that\u2019s the first hurdle. You open an app, see hundreds of companies listed, and immediately wonder: Which stocks should I buy? Which ones will grow? What if I pick the wrong ones? The truth<a href=\"https:\/\/www.paytmmoney.com\/blog\/index-etfs-a-low-cost-way-to-grow-with-the-market\/\">Continue reading <span class=\"sr-only\">&#8220;Index ETFs: A Low-Cost Way to Grow with the Market&#8221;<\/span><\/a><\/p>\n","protected":false},"author":27,"featured_media":6478,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[858,6],"tags":[1212,1215,1216,1214,1218,1220,1217,1221,1219,1213],"class_list":["post-6474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-etf-blogs","category-personal-finance","tag-index-etf","tag-index-etf-meaning","tag-index-etf-vs-index-fund","tag-index-etfs-in-india","tag-low-cost-investing","tag-nifty-50-etf","tag-passive-investing-india","tag-sensex-etf","tag-stock-market-index","tag-what-is-index-etf"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/6474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=6474"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/6474\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/6478"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=6474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=6474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=6474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}