New Delhi, Feb. 17 -- Arvind Alhuwalia, Chandigarh, Punjab

Nifty 500 tracking mutual funds are designed to replicate the performance of the Nifty 500 index. The Nifty 500 index represents the top 500 companies listed on the National Stock Exchange (NSE) of India, covering a wide range of sectors and industries. These mutual funds aim to provide investors with diversified exposure to the Indian stock market by investing in the same companies and the same proportions as the Nifty 500 index.

Diversification: Nifty 500 index funds offer broad market exposure by investing in a large number of companies across various sectors. This diversification helps reduce the risk associated with investing in individual stocks.

Low cost: These funds typ...