Why Finideas’ Index Long-Term Strategy Beats Traditional Investing
What is Finideas’ Index Long-Term Strategy (ILTS)?
The Finideas Index Long-Term Strategy (ILTS) is a disciplined investment approach designed to maximize returns while minimizing risks. It focuses on index-based investing in ETFs or index funds, primarily tracking NIFTY 50, which represents India’s top-performing companies.
Why Choose Index-Based Investing?
âś… Lower costs compared to actively managed mutual funds
âś… Better risk-adjusted returns over the long term
âś… Beats inflation while compounding wealth
Traditional investments like fixed deposits (FDs), actively managed mutual funds, and stock picking often fail to deliver consistent, high-growth, and low-cost returns. Here’s how ILTS outperforms them!
How Does ILTS Outperform FDs and Mutual Funds?
Beating FD Returns and Inflation
Fixed Deposits (FDs) typically offer 6-7% returns, which barely keep up with inflation (5-6%). The NIFTY 50, on the other hand, has delivered historical returns of 12-15% annually, significantly outpacing inflation and providing real wealth growth.
đź“Š Example:
- â‚ą10 lakh in an FD at 6% for 20 years = â‚ą32 lakh
- â‚ą10 lakh in NIFTY 50 ETF at 12% for 20 years = â‚ą96 lakh
đź’ˇ ILTS provides inflation-beating, long-term market growth.
Comparing ILTS to Mutual Funds
Actively managed mutual funds charge 1.5-2.5% in fees, reducing final returns. ILTS has an expense ratio of 1-1.5%, ensuring better cost efficiency while leveraging index-based investing.
How Does ILTS Reduce Risk Compared to Traditional Investments?
Unlike investing in individual stocks, ILTS spreads your money across the NIFTY 50 index, reducing risk. Even if a few stocks underperform, the index adjusts, keeping your returns stable.
🔹 Example:
- If you invested in Yes Bank in 2018, you’d have lost 90% of your investment.
- But NIFTY 50, despite including Yes Bank, continued to grow by over 50% since then.
đź’ˇ ILTS protects against stock-specific risks while ensuring steady growth.
How ILTS Helps You Beat Inflation with Market-Linked Growth
One of the biggest challenges for traditional investments is inflation erosion. If your investment doesn’t grow faster than inflation, you’re actually losing purchasing power.
đź“Ś Traditional Investment Returns vs Inflation:
- Fixed Deposit (6-7%) – Barely above inflation
- Real Estate (8-10%) – Highly illiquid and risky
- Gold (8-10%) – Volatile and non-productive
- ILTS (12-15%) – Long-term market growth and compounding
🚀 ILTS ensures inflation-beating, real wealth creation over time!
Why ILTS is More Cost-Efficient Than Mutual Funds
Traditional mutual funds charge high fees that eat into your profits. ILTS keeps costs lower (1-1.5%) compared to mutual funds (1.5-2.5%), making it a more cost-effective strategy.
🔹 Example:
- A mutual fund with a 2% expense ratio on â‚ą10 lakh = â‚ą20,000 per year lost in fees
- ILTS with a 1.2% expense ratio on â‚ą10 lakh = â‚ą12,000 per year in fees
đź’ˇ Saving on fees means more money growing for you over time!
Why Finideas ILTS is the Best Investment Strategy in India
âś… Higher returns than FDs & mutual funds
âś… Low risk with diversification
âś… Inflation-beating market-linked growth
âś… Lower costs for maximum profit
âś… SIP-friendly for consistent wealth creation
💬 Would you prefer ILTS over traditional investments? Why or why not? Comment below! 🚀
Happy Investing!
This article is for education purpose only. Kindly consult with your financial advisor before doing any kind of investment.