Diversification is a key element of a well-balanced investment portfolio. Investors typically spread their funds across various asset classes such as equity, debt, real estate, and gold. Within each asset class, further diversification helps minimize risks. In equity investing, a common method of reducing risks is diversifying the equity portfolio by investing in shares of companies from different sectors and with varying market capitalizations. This is where Index Funds come into play. In this discussion, we will explore Index Funds, the different types available in India, their benefits, and much more.