Warren Buffett's advice for most investors: buy index funds. Here's how to do it in India.
Why Index Funds?
70-80% of active funds fail to beat their benchmark over 10 years. Lower expense ratio (0.1-0.3% vs 1-2.5%). No fund manager risk. Consistent returns matching the market. See our [Index Fund vs Active Fund comparison](/compare/index-fund-vs-active-fund).
Top Indian Index Funds
Nifty 50: UTI Nifty 50 (0.18%), HDFC Nifty 50 (0.20%). Nifty Next 50: Motilal Oswal (0.40%). Nifty 500: Motilal Oswal (0.22%). See our [Nifty 50 vs Nifty Next 50 comparison](/compare/nifty-50-vs-nifty-next-50).
How to Start
1. Open account on Kuvera/Groww/Coin (zero commission, direct plans). 2. Choose Nifty 50 index fund. 3. Start SIP of ₹5,000-₹10,000/month. 4. Increase SIP annually. 5. Hold for 10+ years.
Asset Allocation
Beginners: 100% Nifty 50. Moderate: 60% Nifty 50 + 40% Nifty Next 50. Aggressive: 50% Nifty 50 + 30% Nifty Next 50 + 20% Nifty Midcap 150.
Common Mistakes
Stopping SIP during crashes. Over-diversifying (3-4 funds is enough). Checking returns daily. Not investing enough. Use our [SIP Calculator](/calculators/sip-calculator) and [Step-up SIP Calculator](/calculators/step-up-sip-calculator) to plan.