I would like to start a SIP in some indexes. I have done some initial checking but I was not able to get clear answers.
Some articles said that you may find that index funds are not liquid; that there may be a big spread in the buy and sell price; they may not track the index fully and that they may sometimes take a decision to keep cash etc… which I found not appropriate as the whole point of an index fund is to not take a judgement call but just track the index.
There is also the issue of charges which seem quite varied by fund to fund and should actually be the lowest as they have no cost of making decisions.
I am quite confused
What exactly is the right way to look at index funds? Which are the good index funds with least tracking error and have the desired liquidity?
I am primarily interested in our main indexes the Nifty, the Sensex and also maybe the Nifty 500. Other ideas and opinions welcome.
This is totally new to me so any advise that can help is most welcome and also might help other readers.