Is an index fund a type of mutual fund
26 Apr 2019 The lower the tracking error, the better the fund's performance. Many mutual fund advisors and financial planners believe index funds are likely to Least cost & passive way of investing in Stock Markets. These funds are based on an underlying index like NIFTY, SENSEX, etc. and simply mirror the returns of Type of Index Mutual Funds. The weightage of a company in the Sensex or Nifty depends on its free float