Plan your investment
What Our Plans Cover
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A portfolio replicating the chosen...
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Automatic rebalancing as the index...
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SIP and lumpsum investment options
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Growth and income distribution opt...
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Broad market
Who Can Consider This Plan?
- Indian resident individual, HUF, trust or company
- NRIs, through a portfolio investment scheme account
- PAN and completed KYC
- A demat account with a registered depository participant
- A trading account with a registered broker
What May Not Be Covered?
- Any possibility of beating the index
- Protection when the index falls
- Any guarantee of return
- Downside management, since the fund stays fully invested
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading investments companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced investments professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
An index fund holds the securities of an index in the same proportion, aiming to match its return rather than exceed it. There is no stock selection, no manager view and, consequently, very little cost.
That low cost is the whole argument, and it is a stronger one than it sounds. Expense ratios on index funds are a fraction of actively managed funds, and over long horizons the difference compounds into a meaningful gap that the active fund must overcome before it adds anything.
An index fund does not protect you from anything. When the index falls, the fund falls with it, in full. What it removes is manager risk — the possibility that your fund underperforms the market because of decisions someone made — and that is a genuine risk with a real cost.
Who should consider it
Investors wanting equity exposure without selection risk. Cost-conscious long-term investors. First-time investors, for whom the simplicity is valuable. Anyone who has concluded that consistently picking outperforming funds is harder than it looks.
Benefits
- Very low expense ratios compared with active funds
- No manager risk — the fund tracks rather than selects
- Full diversification across the index constituents
- Transparent holdings, known from the index composition
- Simple to understand and to hold for decades
- Available through SIP from small amounts
What is included, and what is not
Read the right-hand column first. It is the one that tends to surprise people later.
Included
- A portfolio replicating the chosen index
- Automatic rebalancing as the index composition changes
- SIP and lumpsum investment options
- Growth and income distribution options
- Broad market, large cap and factor index options
Not included
- Any possibility of beating the index
- Protection when the index falls
- Any guarantee of return
- Downside management, since the fund stays fully invested
Terms vary between providers and between plans from the same provider. The offer document you receive is what governs — we will walk you through it before you commit.
How it works with us
- 1 We establish whether direct equity suits you at all For many investors a diversified fund does the same job with less to go wrong. That conversation comes before anything else.
- 2 Allocation set before any stock is discussed How much of your portfolio belongs in direct equity, and what stays in funds and fixed income. Position sizing prevents most permanent damage.
- 3 Demat and trading account set up properly KYC, nomination and the mandates. Done once, correctly, so nothing stalls when you want to transact.
- 4 Research shared, decisions left with you We provide analysis and context. We do not provide tips, and we will not tell you a stock will go up.
- 5 Reviewed against the thesis, not the price The question at review is whether the reason you bought still holds — not whether the price has moved since.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Compare tracking error as well as expense ratio. A cheap fund that tracks poorly is not cheap in outcome.
- The fund falls with the index, fully. There is no manager to reduce exposure in a downturn, and that is by design.
- Over long horizons the cost difference against active funds compounds meaningfully. That gap is the whole argument, and it is a durable one.
- Choose the index deliberately. A broad market index behaves differently from a narrow large cap one or a factor index.
- Mutual fund investments are subject to market risk. An index fund gives you the market's return, including the market's declines.
Documents required
- PAN card, mandatory for all securities transactions
- Aadhaar or other identity proof
- Address proof
- Bank account proof — cancelled cheque or statement
- Income proof, for derivatives segment activation
- Recent passport-size photograph
- Signature specimen and in-person verification
Frequently Asked Questions
Why choose a fund that does not try to beat the market?
Because the cost of trying is certain and the success is not. Index funds charge a fraction of active funds, and over long horizons that difference compounds into a gap the active fund must overcome before adding anything. Removing manager risk is worth more than most investors assume.
What is tracking error?
The gap between the fund's return and the index it tracks, caused by costs, cash holdings and rebalancing timing. Lower is better, and it is worth comparing alongside the expense ratio — a cheap fund that tracks poorly is not actually cheap.
Will an index fund protect me in a crash?
No, and it does not try to. When the index falls the fund falls with it, in full, because it stays fully invested by design. What it removes is the risk of underperforming the market, not the market itself.
Which index should I choose?
A broad market index for general equity exposure; a large cap index for lower volatility; factor indices for a specific tilt. The choice of index matters more than the choice of fund house, since the fund is only tracking whatever you selected.
Are index funds suitable for a first investment?
They are among the most sensible starting points — low cost, diversified, simple to understand, and with no selection decision to get wrong. Mutual fund investments remain subject to market risk, and the value can fall as well as rise.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.