Index funds have gained immense popularity among investors in recent years, fueled by their low costs, broad market exposure, and the appeal of passive investing. As a result, certain index funds have become highly popular and attract significant inflows of investor capital. However, it’s crucial to understand that popularity does not always equate to superior performance or suitability for every investor. In this article, we explore the potential pitfalls of blindly favoring popular index funds and highlight the importance of considering individual investment goals and factors beyond sheer popularity. The Popularity Factor Popularity alone is not a reliable indicator of investment success. When a particular index fund gains widespread attention and experiences a surge in assets under management, it can lead to unintended consequences. The influx of new capital may cause the fund’s portfolio managers to deviate from the intended replication of the underlying index, resulting in tracking errors and potential dilution of performance. Size and Liquidity Concerns The rapid growth of popular index funds can also create size and liquidity challenges. As more investors pour money into these funds, the sheer scale of assets