An index fund in the form of a direct plan is the best way to invest if you want a reliable way to invest. The index fund helps buy a basket of 50 stocks (Nifty index fund; there are other index funds too tracking the Next 50 in Nifty, Midcap Index, etc) at a very low cost.
The direct plan of the index fund reduces your expense ratio further. So these are the very good benefits of investing in an index fund. The third one is that there is no risk of the fund manager not performing well, or not aligned to your interest.
To read more, please click on the following link :- http://jamawealth.com/blog/should-you-invest-in-index-funds-or-direct-equity