Best Index Fund / ETF
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I want to start a SIP in Index Fund/ETF.
What is the best Index Fund/ETF to consider?
1. Low Expense Ratio
2. Low tracking error
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Uti Nifty 50
UTI Nifty Index fund has increased the expense ratio from 0.10% 0.20% from 16th April this year. https://www.livemint.com/mutual-fund/mf-news/ad...
Also I see most of the ETF are trading at 3-5% premium than the current Nifty Index
To add, can some one help me with the excel that will help be calcuate the tracking error?
Navi nifty fifty 0.06%
I would rather stay away from new funds even though it is trusted. Low expense ratio does not mean less tracking error.
Moreover, to get investor attention for this new fund expense ratio might be kept less
As opposed to UTI Index Fund -
UTI ETF expense ratio is 0.06% https://www.utimf.com/mutual-fund-products/etfs...
Index fund has 3X+ expense ration
So, I was getting a FOMO of not starting SIPs.
For the last 6-8 months I was trying to “Time the market” to do lumpsum investing, But i believe i will never be able to time the market. Still, i think myself i am getting in a wrong time, many will say the same,
But I have started the SIP of Rs. 1000 in UTI Nifty Index Fund (Basis – I trust UTI, and 4 star from crisil)
For me, I will think i am spending 1000 in leisure activity every month.
To get out the fear of SIP, i am starting with 1k, will gradually increase it to 5K (across other schemes) and do lumpsump investment in the dips.
What is the
1. Expense ration of nifty nippon bees?
2. what is the tracking error of it?
The fund house has not mentioned the expense ratio or the tracking error – https://mf.nipponindiaim.com/FundsAndPerformanc...
niftybees
bankbees
motilal nasdaq fof (for international exposure)
Jabardasti index funds maat lo. Check for a good actively managed mutual fund. You ll pay higher expense ratios but historically actively managed funds have beaten indexes by a long margin. 🙃🙂
historically which active fund is there from the last 15-20 year paji
Stop focusing so much on expense ratios and focus on your target return. If you want to make 10-12% returns over long term then index funds are fine else look at equity based funds
These youtubers have unnecessary highlighted expense ratio, it’s important but it can’t be looked at in isolation. There are multiple factors to consider – investment horizon, past returns, portfolio of stocks, aum of the fund, portfolio rebalancing etc.
I would even prefer investing with a good advisor and going with normal schemes provided I’m achieving my targeted returns and goals.
And what are the tracking errors? Where to get that data?
Freefincall 🙂
Check out this – “indiaetfs.in”. Has clear details of all ETF’s and IF’s.
I am currently investing/SIP’ing in NiftyBees and JuniorBees. Selected these because of low ER and TE. Also due to high liquidity/
Nice website, This is what I was finding.
Which would be tracking the index more closely, a FoF of ETF or an Index Fund (Assuming same index, similar tracking error, expense ratio etc.) ?
Some AMCs like Nippon (for Nifty) and MOSt (for Nasdaq), don’t offer an Index fund, but rather a FoF of their underlying ETF itself; I simply don’t get what would be the difference in creating a FoF of ETF and not directly the Index Fund itself :|
@Ramta_Jogi @bikidas2060 @BubbleBoyChickenLittle @Awake @guest_999 @malikcool @still_guessing @MrKool_JJ @InvestPotato
Index fund bhai. MOSt is a fund of fund because Indians have to face a lot of hassle in order to invest in NASDAQ ETFs. Motilal Oswal has made the process simpler. Some mutual funds just invest directly into ETFs. It’s more efficient for the fund manager. Nippon already has Niftybees ETF. 🙂
more than a year has passed, still not finding any credible data for tracking error.
@BlueFlash For ETFs Refer – https://www.indiaet...n/
Thanks, I already know in details about ETF and Index Funds; I am just curious as to why some AMCs have created an ETF FoF and not directly an Index Fund.
And yes, as of now I am preferring Index Fund only for long term SIP investment. Using ETFs only in case of major dips/corrections in market; want to keep things simple since I am kinda newbie in this field.
Will markets fall below 50k?
Highly doubt that would be the case till we have another full fledged lockdown in April & May (after UP elections, since no covid/omicron threat comes during election rallies)
Nifty might take a swing to lows of 16K +/- 2% though buying & adding Nifty 50/100/Sensex index around 16,500 (nifty) levels would be good.
Large cap ITs or even IT Index/ETF would outperform in the near to medium term (1-3 years). Banking/Financial ETF/Index would be dark horse. I expect that to start firing as we approach the next RBI meet.
Pharma index won’t witness a broad based run like last year; only selective stocks would be my target.