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Best Index Fund / ETF

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Super Stud
InvestPotato

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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Critic Critic
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I prefer nippon niftybees etf direct purchase from stock market for those "timing/lumpsum" days.
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Deal Cadet Deal Cadet
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Uti Nifty 50

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Benevolent Benevolent
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@guest_999

Super Stud Super Stud
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Also I see most of the ETF are trading at 3-5% premium than the current Nifty Index

Super Stud Super Stud
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To add, can some one help me with the excel that will help be calcuate the tracking error?

Generous Generous
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Navi nifty fifty 0.06%

Super Stud Super Stud
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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

Super Stud Super Stud
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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.

Critic Critic
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I prefer nippon niftybees etf direct purchase from stock market for those "timing/lumpsum" days.
Super Stud Super Stud
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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...

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Deal Lieutenant Deal Lieutenant
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niftybees
bankbees
motilal nasdaq fof (for international exposure)

Tech Guru Tech Guru
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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. 🙃🙂

Benevolent Benevolent
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historically which active fund is there from the last 15-20 year paji

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Deal Lieutenant Deal Lieutenant
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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.

Helpful Helpful
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And what are the tracking errors? Where to get that data?

Tech Guru Tech Guru
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Freefincall 🙂

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Deal Cadet Deal Cadet
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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/

Super Stud Super Stud
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Nice website, This is what I was finding.

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Critic Critic
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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

Tech Guru Tech Guru
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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. 🙂

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Benevolent Benevolent
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more than a year has passed, still not finding any credible data for tracking error.

Critic Critic
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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.

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Deal Cadet Deal Cadet
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Will markets fall below 50k?

Finance Mentor Finance Mentor
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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.

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