We often come across people who are disgruntled with stock markets as they have not been able to fulfill their expectations. The reason for their displeasure isn’t the stock markets instead, the real reason is their unreal expectations from the markets. Stock Markets are not casinos to double or triple your money in a jiffy, rather they are the source for enormous compounding but over a long period of time. You’d have to experience it to believe it. We have observed that anyone who is seriously committed and has patience can make handsome returns here. Even those who have no time to study different businesses or don’t have the interest to dig deep into financials of a business also have a huge opportunity to create a good amount of capital. One just needs to be disciplined and have a plan. We analyse and explain to you, what are indices and the different ways to invest in an Index. We also explain and give examples of how Free Float Indices are made, what is tracking, error and why Exchange Traded Funds (ETF) have lower tracking error compared to Index Funds. We conclude by giving the pros and cons of both ETFs and Index Funds. You will get a flavour of how powerful Passive Investing can be.