InvestorQ : Can we buy index funds at all-time highs?
Tanu Shukla made post

Can we buy index funds at all-time highs?

krithika Saxena answered.
1 year ago
An index fund is a type of fund that invests in the index (Nifty50, Sensex, sectoral indices, etc). Its performance tends to mirror that of the index it is replicating. Index funds are passively managed funds that allow investors to participate intelligently in the stock market. So, if the market is bullish, the fund will do well, but won't do as well as some individual performers (companies or sectors). In bad years, it won't do as bad as some individual stocks. An index fund is the safest option for a retail investor who has little or no knowledge about the stock market.

If you are an investor who plans to remain in the equity markets for over 10 years, essentially the long term, you can definitely invest in index funds. If you invest through systematic investment plans (SIPs), the price of each unit gets rationalized over the long term, provided you consistently invest without interruptions.