Mutual Funds · Intermediate
Index funds and ETFs: passive investing
Index funds, ETFs, tracking error, smart beta and how to build a low-cost core.
What is inside
6 short lessons. Each ends with a quiz, so you know what you have learnt.
How passive funds work
- What passive investing really is
- Index fund or ETF: same idea, different wrapper
- Tracking error and tracking difference
Smart beta and building a core
- Smart beta and factor funds
- Building a core with passive funds
- Picking an index fund: a checklist
Key ideas you will take away
- Copy an index.
- Low cost, not low risk.
- Fund: NAV, SIP-friendly.
- ETF: exchange, demat.
- Difference = gap in return.
- Error = how jumpy the gap is.
Try a question
Q1. A passive fund aims to:
- Beat the index by a wide margin
- Hold only cash
- Match an index
- Time the market
Show the answer
C. Index funds mirror their benchmark.
Q2. An ETF is bought:
- Only from the AMC at NAV
- Only as an SIP
- Only in a bank
- On the stock exchange through a demat account
Show the answer
D. ETFs trade on exchanges.
Frequently asked questions
Is the Index funds and ETFs: passive investing course free?
Yes. Lessons, quizzes and practice are free. Sign in once with your mobile number or Google to start.
Who is the Index funds and ETFs: passive investing course for?
It is a intermediate-level course with 6 short lessons, written in plain language for beginners and for people who advise others on money.
Can I learn this in Hindi or Gujarati?
The app screens switch between English, Hindi and Gujarati at any time, and many quiz questions have translations. Lesson text is in English for now.
Do I get a certificate?
Yes. Pass the course exams to earn a certificate that anyone can verify online.
Is this investment advice?
No. It is education only. Speak to a qualified adviser before you act on your own money.
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UpperCrust Academy is independent study material from UpperCrust Wealth. It is not affiliated with NISM, SEBI or AMFI. For education only. Not investment advice. Always confirm the latest syllabus and rules on the official NISM website.