Full explanation
An index fund passively tracks an index like Nifty 50 (top 50 companies by market cap) or Nifty 500. Pros: very low expense ratio (0.1–0.2%), no fund manager risk, transparency, diversification. Cons: will never beat the market (that's by design). Research: over 10 years, 80–90% of active equity funds underperform their benchmark after fees. For most investors, a Nifty 50 + small-cap index fund combination is the optimal core portfolio. Add ELSS (active fund) only for 80C benefit. Direct plans available on Zerodha Coin, Groww, Paytm Money, CAMS, and fund house websites.