Investor Communication Series

Investment in
Index Fund

What is an Index Fund?

An index is a portfolio of securities representing a particular market or a portion thereof.
An equity stock market index is comprised of a group of stocks that are representative of
the whole or a specific segment of the market, based on sector, market cap, etc.
The components of the index typically have common risk and return characteristics. Hence
an index captures the behavior/characteristics of a broad market or its sub-segments.
The portfolio of an equity Index Fund is a replica of the constituents of an index and in the
same proportion as their weightage in that index e.g. the NSE 50 Index. (CNX Nifty)
Characteristics of an Index Fund
Make no attempt at forecasts and analysis as its objective is to closely replicate the
performance of the target Index. Thus the performance of index scheme would rise or
fall in accordance with the rise or fall in the target index.*
Reduce non-systemic risk, i.e. risk that is unique to an individual company or industry
isminimised.
Lower expense ratios.
Ease in portfolio construction, monitoring and rebalancing.
Allocate across asset classes which are not correlated, e.g. portfolio comprised of
GSNiftyBeES, GS Junior BeES, GS Liquid BeES and GS Gold BeES.
* Due to tracking error the performance of the fund may vary to that of index. Necessary disclosures in this regard are made in the offer document
of the mutual fund scheme

Index Funds are of two types:

Traditional open ended Index Mutual Fund
Exchange Traded Funds or ETFs
Both types have all above mentioned characteristics, however some differences are:
Traditional Open Ended Index Fund

Exchange Traded Funds

Buying/Selling

Directly with mutual fund house

Can also be done through Stock

Exchange as ETFs are listed on
secondary market

NAV

Declared only once a day after financial Additionally, indicative real-time NAV
markets close
available throughout trading session

Trading flexibility Transactions processed once a day

atend of day NAV

Throughout market trading hours

SIP Facility

SIP offered by Mutual Fund

SIP facility may be offered by

registered StockBroker

GSAM Index
Funds

GS CNX 500 Fund

GS Nifty BeES
GS Junior BeES
GS Bank BeES
GS PSU Bank BeES
GS Shariah BeES
GS Infra BeES
GS Hang Seng BeES

This material is provided for educational purposes only and should not be construed as investment advice
or an offer or solicitation to buy or sell securities.
For more details, please contact us at any of our customer service touch points below:
Call Toll free: 1800 266 1220 | Email us at: gsamindia@gs.com

Investor Communication Series

Product Label
Product

This product is suitable for investors who are seeking*:

GS Nifty BeES

Long-term capital appreciation.

Investment in securities covered by CNX Nifty Index.
(BROWN)
High risk.

GS Junior BeES

Long-term capital appreciation.

Investment in securities covered by CNX Nifty Junior Index.
(BROWN)
High risk.

GS Bank BeES

Long-term capital appreciation.

Investment in securities covered by CNX Bank Index.
(BROWN)
High risk.

GS PSU Bank BeES

Long-term capital appreciation.

Investment in securities covered by CNX PSU Bank Index.
(BROWN)
High risk.

GS Shariah BeES

Long-term capital appreciation.

Investment in securities covered by CNX Nifty Shariah Index.
(BROWN)
High risk.

GS Hang Seng BeES

Long-term capital appreciation.

Investment in securities covered by Hang Seng Index.
(BROWN)
High risk.

GS Infra BeES

Long-term capital appreciation.

Investment in securities covered by CNX Infrastructure Index.
(BROWN)
High risk.

Goldman Sachs CNX 500 Fund

Long-term capital appreciation.

Investment in securities covered by CNX 500 Index.
(BROWN)
High risk.

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Note: Risk may be represented as:
(BLUE) investors understand that
their principal will be at low risk

(YELLOW) investors understand that

their principal will be at medium risk

(BROWN) investors understand that

their principal will be at high risk

This material is provided at your request for informational purposes only. It is not an offer or solicitation to buy or sell any securities.
THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION WHERE OR TO ANY PERSON TO WHOM IT WOULD
BE UNAUTHORISED OR UNLAWFUL TO DO SO.
Goldman Sachs does not provide legal, tax or accounting advice to its clients. All investors are strongly urged to consult with their legal, tax, or
accounting advisors regarding any potential transactions or investments. There is no assurance that the tax status or treatment of a proposed
transaction or investment will continue in the future. Tax treatment or status may be changed by law or government action in the future or on a
retroactive basis.
This material is issued in or from India by Goldman Sachs Asset Management (India) Private Limited (GSAM India).
Confidentiality
No part of this material may, without GSAMs prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or
(ii) distributed to any person that is not an employee, officer, director, or authorised agent of the recipient.
2013 Goldman Sachs. All rights reserved. 105256.OTHER.OTU

Mutual fund investments are subject to market risks, read all scheme related documents carefully.