Is it right to invest in Index funds

 What are Index funds:

 Index funds are essentially a basket of stocks (shared) which mimic the behavior 

It is not easy to beat the market. Most actively managed MF does not beat the market. Index funds in some sense is the market itself so you are safe to invest in Index funds itself. 

Advantages of Index funds

1. The expense ratio for index funds is low (2-5 X lower then an actively managed MF)

2. You are basically investing in Top companies if you choose SENSEX or NIFTY index. That comprises of top companies of the nation which itself is good enough credence

3. Choices are less and hence amount of time needed to do research is also less

Disadvantages of Index funds

1. You give up chances of beating the market given Index funds is the market in itself. But that is ok since beating the market is <50% probability anyways over the long term

Most MF do not beat the market. That is truth. Index funds are market itself in some sense so for most passive investors, Index funds are good enough way to invest. This is not to say that investing in MF is big no no.. Some MFs do good and can be invested in. They are better in risk adaption and also in returns but finding/selecting and tracking such MFs is not easy. Therefore, I will usually suggest to stick to Index funds.. You are investing in Top companies of the country so you can trust them on an average.