5 Tips to Build a Low-Cost Portfolio With Index Funds
Antara Bhattacharyya
Choose Broad Market Index Funds: Opt for funds tracking major indexes like the S&P 500 to ensure diversified exposure at minimal costs across multiple sectors.
Stick to Low Expense Ratio Funds: Prioritize index funds with expense ratios below 0.10% to reduce fees and maximize your long-term investment returns.
Automate Regular Investments: Set up monthly SIPs to invest consistently, harnessing the power of compounding and rupee-cost averaging without timing the market.
Rebalance Annually, Not Frequently: Check your portfolio once a year to align with your goals—frequent trading only adds costs without boosting performance.
Avoid Overlapping Funds: Choose funds covering distinct indexes to prevent duplication and maintain efficient diversification in your portfolio.