The idea behind index fund is to replicate the performance of an index like Nifty 50 or Sensex. These are also called passive funds wherein expense ratio is less as compared to actively managed funds. So, I feel index funds suit the investors who wish to invest for a longer duration. The historical data also implies that index funds perform better over longer periods. There may be short term volatility. But, overall it seems to be an investment alternative to build long term wealth. What do you think?