Hi Sir, I started investing from last 3months in below index funds,
Hdfc s&p bse 500 direct growth
Kotak s&p housing index fund direct idcw reinvestment
Edelweiss nifty smallcap 250 index fund idcw reinvestment
Kindly provide your feedback for below points,
1. In these funds which one will give compounding returns?
2.is these funds are good for long term?
Please do reply
Ans: All the index funds you've chosen track different market segments, offering diversification to your portfolio. Over the long term, the compounding effect can be significant, especially in equity-based index funds like HDFC S&P BSE 500 and Edelweiss Nifty Smallcap 250. However, it's essential to note that past performance is not indicative of future results, and market conditions can vary.
Index funds are generally considered suitable for long-term investment due to their low costs, passive management style, and ability to capture broad market movements. However, ensure these funds align with your risk tolerance and investment goals, and regularly review your portfolio to ensure it remains on track. Consulting with a Certified Financial Planner can provide personalized guidance based on your financial situation and objectives.