@sudheer said in What are Index Funds: meaning, advantages, review, Taxation: Index funds deliver returns more or less equal to the benchmark. Returns from Index Funds cannot be more than returns of benchmark index. Its always quite less due to tracking error and expense ratio. While actively managed mutual funds can give higher returns. If yes, which one is better overall, active funds or passive funds? Its more of a personal choice to go for actively managed funds or index funds. Like for me, I change my stance from actively managed funds to index funds, slowly over a period of time, by knowing more and more about them.