Market Blog

The Risk Factor – Buying Index v/s Equity

On 16/03/1980, Joe the baker and Jack the carpenter invested in the stock market. Jack bought S&P 500 Index. Joe, on the other hand, thought that index investment is boring, and buying diversified equity instead would give better results, so he bought the stocks. There is a prevalent notion that Index funds are static and boring. True, they don’t fall prey to sentiment movements and behavioural biases, but they are