Other Funds include unique mutual fund types such as Index Funds, Exchange Traded Funds (ETFs), and Fund of Funds. Unlike actively managed funds, Index and ETF funds track a particular market index like the Nifty 50 or Sensex, offering market-matching returns with lower costs. These are ideal for investors who prefer a passive approach to investing.
Fund of Funds, on the other hand, invest in other mutual fund schemes rather than directly in stocks or bonds. This provides an extra layer of diversification as your money is spread across multiple funds and strategies.
These options are best suited for investors looking to diversify beyond traditional categories or those who prefer low-cost, long-term investing. They also provide easy access to global markets, commodity funds, or niche strategies without requiring direct investments in those areas. Other funds bring flexibility and variety, making them an important part of a well-rounded portfolio.
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