Diversification plays a crucial role in creating a balanced investment portfolio. Investors often allocate their resources across various asset classes, including equity, debt, real estate, and gold. Within each class, further diversification can minimize risks. In equity investments, for instance, a proven strategy to reduce risk is by diversifying an equity portfolio through investment in shares of companies across different sectors and with diverse market capitalizations. Here, Index Funds become highly relevant. This discussion aims to explore Index Funds extensively, delve into the types available in India, their benefits, and more.