Index funds are gaining traction among Indian investors for their low-cost structure, broad market exposure, and potential for long-term wealth creation. In this blog, we explain what index funds are, how they work, who should invest in them, and how you can participate in JioBlackRock’s latest Index Fund NFOs directly through the Paytm Money app.
What is an Index Fund?
An index fund is a type of mutual fund that replicates the performance of a specific market index—like the Nifty 50, Nifty Next 50, or Nifty Smallcap 250. Rather than actively picking stocks, these funds passively track the index by holding the same stocks in the same proportions.
Because index funds follow the market instead of trying to outperform it, they offer:
- Broad diversification
- The returns are aligned with market performance
How Do Index Funds Work?
Here’s a simple breakdown of how index funds function:
- Selection of Index: The fund manager identifies an index aligned with the fund’s investment goals.
- Portfolio Replication: They buy all or a representative set of securities from that index.
- Rebalancing: As the index updates, the fund manager adjusts the portfolio to maintain alignment.
- Passive Strategy: This approach helps reduce expenses, offering investors nominal cost options.
Who Should Invest in Index Funds?
Index funds are suitable for:
- Passive Investors – Those who prefer minimal intervention.
- Cost-Conscious Individuals – Looking to avoid high fees.
- Tax-Sensitive Investors – Benefiting from low turnover and fewer capital gains.
- First-Time Investors – Seeking simplicity and stability.
- Diversification Seekers – Gaining exposure across sectors in one go.
Easy Access to JioBlackRock Index Fund NFOs via Paytm Money
Our wholly-owned subsidiary Paytm Money has partnered with JioBlackRock Asset Management to launch five new Index Fund NFOs from August 5 to August 12, 2025. These are now available for investment directly via the Paytm Money app.
Available NFOs:
- JioBlackRock Nifty 50 Index Fund
- JioBlackRock Nifty Next 50 Index Fund
- JioBlackRock Nifty Midcap 150 Index Fund
- JioBlackRock Nifty Smallcap 250 Index Fund
- JioBlackRock Nifty 8–13 Yr G-Sec Index Fund
Why Choose Paytm Money for Index Fund Investing?
Here’s what makes Paytm Money a smart choice:
- Zero Commission: No hidden charges
- Start with just ₹500: SIP options available for disciplined investing
- SOA-Based Access: Flexible and transparent investment control
- 100% Digital Onboarding: Easy and fast sign-up process
- Backed by Aladdin: BlackRock’s advanced risk and data platform
- Global and Local Expertise: Powered by BlackRock and Jio Financial Services
With our wholly-owned subsidiary and JioBlackRock, investing in India’s top index funds is now more accessible than ever—perfect for both seasoned investors and first-time mutual fund buyers.
