LOW COST INDEX FUNDS ARE THE ONLY WINNER GAME . Review on Mutual Funds Vs. Index Funds

Low cost, no load, tax efficient, broadly diversified portfolio of INDEX FUNDS with proper asset-allocation between stocks, bonds, cash and REIT  both domestic and international stock index funds including emerging markets are the only winner game in long term.

As they are passively managed, on autopilot, there is no manager as they buy all the stocks in the index they are following like s&p 500 index or NIFTY 50 index, as costs are lowest because no high manager fee, no research expenses as you are always in top 50 or top 500 stocks.

So no human error of selecting wrong stocks, you will just pay expense ratio of 0.30% per year compared to hyperactive mutual funds who charges expense ratio of above 2.5% plus hidden charges, front end load of 6% or more which goes to broker who sold you the active mutual fund, than publicity charges, see any financial magazine you will find advert.

Of active mutual funds all over, even financial newsletters ans TV channels will recommend those active mutual funds, who are paying them millions from investors money to attract more investor. 90 to 98% of all hyperactive mutual funds frail to beat the market and under perform the index funds in long term.

Because of very high cost of fund managers, research team, hyper active trading above 100% leads to more short term taxes. your broker and fund advisor is not your friend, they are all salesman their house is running on your money, which they cut for high brokerage charges and incentives which they get from fund house to sell you an active mutual fund . no broker or financial magazines will tell you to buy index funds, than why you will buy magazines and watch financial channels.

But they all know that markets are very efficient as per EMH efficient market hypothesis it is impossible to beat the market consistently in long term, it is well explained by founder of vanguard group and inventor of first index fund in 1976 by John c.Bogle in his little book of common sense investing which every index investor must read, before investing hard earned money in high cost active funds where you are making your broker and wall street rich . be an indexer and send your money to work by harnessing the power of compounding in long term, instead of you working for money to make your broker and fund house rich.