How to Invest in an Index Fund

Vidia: You don't have to choose actively which mutual funds to buy and do your research. The only thing to keep in mind is that if you want to spend your money within, let's say, five months or less than one year, then it is not advisable to invest through an equity mutual fund. Then you should go for a debt mutual fund or a bank FFT. But if you have longer term goals, let'ssay three to five years, then you can go with an equity Mutual Fund. If you're going to stick to non-D-mat investing through index funds, you don't need a D-mat account at all.