๐€ ๐ญ๐ก๐ซ๐ž๐š๐ ๐จ๐ง ๐ˆ๐ง๐๐ž๐ฑ ๐…๐ฎ๐ง๐๐ฌ
This thread will help you to understand the index funds really well. If you want more of such threads in future,do comment the topic you want me to cover and don't forget to RETWEET! Let's start :

Who started it?
John Bogle, commonly referred to as Jack, is known as The Father of Index Investing and The Father of Index Funds. Bogle was born in Montclair, New Jersey on May 8, 1929.
What was the first index fund?
After graduation, Bogle went to work for Wellington Management from 1951 to 1974, but was fired because of a merger decision he made. In 1974, he found the Vanguard Group Inc., and in 1976 he introduced the first retail index fund the Vanguard 500
Why should we trust Bogle and not telegram rockets?
Although Bogle was initially mocked for his introduction of the index fund, he proved to be a true visionary and was even named as one of the โ€œWorldโ€™s 100 Most Powerful and Influential Peopleโ€ by Time Magazine in 2004
What is Vanguard's position right now?
Vanguard has grown to become one of the worldโ€™s largest investment management companies, with more than five trillion in global assets under management. Although Mr. Bogle died in January of 2019, his philosophy of index investing is ALIVE.
But what are index funds?
An index fund is a type ofย mutual fund with a portfolio constructed to match or track the components of a financialย market index,such as SENSEX , NIFTY 50 etc!Most index funds are greatly diversified that could only be matched by a few investors
Before we move ahead,Can you please explain me about index funds in Hindi too as my English is not that good?
No worries,had put up 2 videos on index funds in hindi which you can check out :
1-https://t.co/mtcy2dLPek
2-https://t.co/r7dEy5Cb9a
Let's move ahead to know more...
Why should we invest into index funds?
1-Index funds outperform the vast majority of actively managed funds. Two-thirds of actively managed mutual funds have failed to beat their relevant index in a typical year, and over 80 percent
2-Investing in index funds provides simplicity and transparency to an investment portfolio. Individual investors pay unprecedented attention to their investment portfolios and abandon during financial crisis.Index funds are secured so you can hold onto it.
3-Investing in index funds serves to counteract several harmful biases in behavior. You are your worst enemy when it comes to investing! Overconfidence, aversion to loss, and herding are just some that can prevent you from making the right investment decisions.
4-Index funds are extremely tax efficient, since they have very low turnover rates. The turnover rate is the percentage of a fundโ€™s holdings that are exchanged (sold and replaced) in a given year.
5-Since index funds are passive investments, they incur much lower expenses to manage. Actively managed funds charge higher fees that may be the result of research by analyst, transaction fees and numerous other fees or expenses which simply are non-existent with index funds.
But there must be some disadvantage right? Yes there is!
When you invest in an invest index fund, you will not outperform its benchmark index. Since index funds are designed to mimic their benchmark, thatโ€™s to be expected. So you basically are going to match benchmark only.
So you see in a small thread made you understand the index fund concept! Want more on interesting finance topics? Just go and RETWEET the first tweet of this thread which will give an indication that you want more. LIKE AND SHARE.
Keep learning
Keep growing

More from Abhishek Kar

๐‘๐ฎ๐ฅ๐ž๐ฌ ๐จ๐Ÿ ๐ˆ๐ง๐ฏ๐ž๐ฌ๐ญ๐ข๐ง๐  ๐“๐ก๐ซ๐ž๐š๐
The entire thread summarizes some important rules with respect to investing. Inspired by legendary traders,these will not only help you to grow wealth,but also make a smart investor. Hope you would like the thread & shower some love

Rule 1: Bulls, Bears Make Money, Pigs Get Slaughtered so chose your category wisely
Rule 2: It's OK to Pay the Taxes,Dont just wait for a 10% LTCG always. Sometimes you know it won't pay you
Rule 3: Don't Buy All at Once,Have patience market will give enough opportunities

Rule 4: Buy Damaged Stocks, Not Damaged Companies. Understand the diff b/w undervalued stocks and no value stocks. Everything cheap is not bargain,it could be trap.
Rule 5: Diversify to Control Risk,make sure you don't put everything into one stock,one sector or one asset class.

Rule 6: Do Your Stock Homework. You spend 5 hours to buy a cream on Amazon but research for 1 hr based on buying a stock on twitter! Well,do your homework.

Rule 7: No One Made a Dime by Panicking .Invest 2-10% and leave rest. If it falls,pain will be low,if moves,no FOMO haunt

Rule 8: Buy Best-of-Breed Companies,This doesnt mean you have to invest in the most expensive companies,all it means is you need to buy co.s with good earnings,promoters and sustainability
Rule 9: Defend Some Stocks, Not All
Rule 10: Bad Buys Won't Become Takeovers,STOP hoping
๐‚๐จ๐ฏ๐ข๐ ๐š๐ง๐ ๐ข๐ญ๐ฌ ๐ข๐ฆ๐ฉ๐š๐œ๐ญ ๐จ๐ง ๐ˆ๐ง๐๐ข๐š๐ง ๐ž๐œ๐จ๐ง๐จ๐ฆ๐ฒ
The entire thread will talk about covid and it's effect on our economy. The data will be backed by facts. If you want more informative threads in the future,don't forget to RT and share with friends.

1. The worst affected sector:
The worst affected of the lot will be travel industry. The incomes produced by movement and the travel industry, which contributes 9.2% of the GDP, will negatively affect the GDP rate. UNWTO assessments portray a fall of 20โ€“30%in global travellers.

2. Positive replacement from China:
A chance to partake in worldwide stockpile chains, multinationals are losing trust in China. In'Make in India', a few changes are required,and if that takes place, manufacturing and API base companies will shift to India giving a growth blast.

3. Construction sector can see loss of revenue :
We saw an appalling mass migration of such coasting populace of travelers by walking,amidst of countrywide lockdown. Wage workers specially working in construction,may not turn back so quickly. Many have preferred farming too!

4. Bankning and Finance sector
For a moment stop comparing ground realities with stock market action. Nonperforming credits relating to retail and MSME sections are on the ascent. In its Financial Stability Report,RBI has also said it fears defaults of many loans in next 2yrs!

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