https://www.desidime.com/discussions/canara-robeco-blue-chip-or-nifty-50-index-fund-for-10-years?page=1#post_8827725
index anytime
Canara Robeco Blue Chip or Nifty 50 Index Fund for 10 years
- 823
- 10
-
- Last Comment
Hi,
Starting to plan a Monthly SIP for next 10-15 years on Large cap segment. Shortlisted these two. One is passive index fund and other is actively managed large cap fund.
1) Nifty 50 Index Fund.
2) Canara Robecco Bluechip Fund. (Large Cap)
Should i go for Passive index fund or Active large cap. I am okay paying little additional expense ratio for active fund.
Does the second option beats the index?
Expired
Disclaimer
We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.
Top Comments
9 Comments
|
6 Dimers
- Sort By
https://www.desidime.com/discussions/canara-robeco-blue-chip-or-nifty-50-index-fund-for-10-years?page=1#post_8830857
Canara one has outperformed Nifty 50 Index over 10 years. One of the very few to do that.
You can put 50% in Nifty 50 index & 50% in canara bluechip in case u get too confused
https://www.desidime.com/discussions/canara-robeco-blue-chip-or-nifty-50-index-fund-for-10-years?page=1#post_8831047
Ramta_Jogi wrote:Yes thats why i shortlisted Canara bluechip. Thansk for sharing your thoughts,Canara one has outperformed Nifty 50 Index over 10 years. One of the very few to do that.
You can put 50% in Nifty 50 index & 50% in canara bluechip in case u get too confused
https://www.desidime.com/discussions/canara-robeco-blue-chip-or-nifty-50-index-fund-for-10-years?page=1#post_8831684
Index fund.
In such a long time it's difficult to outperform the market, so active funds (like CR blue chip fund) tend to show average performance compared to benchmark. But when you consider fees of active funds (much higher than index funds) their net performance is relatively lower.
https://www.desidime.com/discussions/canara-robeco-blue-chip-or-nifty-50-index-fund-for-10-years?page=1#post_8835731
Sachin9811 wrote:CR blue chip fund is 0.38% expense fees and Index funds fees is 0.2% approx...Will that make much of a difference on long term?Index fund.
In such a long time it's difficult to outperform the market, so active funds (like CR blue chip fund) tend to show average performance compared to benchmark. But when you consider fees of active funds (much higher than index funds) their net performance is relatively lower.
https://www.desidime.com/discussions/canara-robeco-blue-chip-or-nifty-50-index-fund-for-10-years?page=1#post_8836199
Expand
dealstaar wrote:
CR blue chip fund is 0.38% expense fees and Index funds fees is 0.2% approx...Will that make much of a difference on long term?
Agree expenses are less but still double the index fund. These things matter over long run. To be honest, even I have invested in the CR BC fund. But more investment is in index funds.
There are many ifs and buts for an active fund. If the fund manager changes, they dont catch a market cycle, they increase expense ratio. Over long run, v difficult to deliver outperformance over benchmark.
You have selected CR blue chip fund out of so many schemes. But do you know there are many other schemes that are not in existence today, they have closed down because of under performance. This is survival bias.
So, just to expect outperformance by CR for another 10-20 years, would be too much. Ultimately almost all funds reverses to mean.
To summarise, if you want to invest and forget do index or do etf if have demat.
https://www.desidime.com/discussions/canara-robeco-blue-chip-or-nifty-50-index-fund-for-10-years?page=1#post_8839966
NiftyBees 
https://www.desidime.com/discussions/canara-robeco-blue-chip-or-nifty-50-index-fund-for-10-years?page=1#post_8840338
Ramta_Jogi wrote:That's the thing: Which one will outperform, we don't know... Yesterday/Today it's Canara, Tomorrow it might be other... The whole point of owning an Index Fund is not to be the top performer, but rather be the median one.
Canara one has outperformed Nifty 50 Index over 10 years. One of the very few to do that.
https://www.desidime.com/discussions/canara-robeco-blue-chip-or-nifty-50-index-fund-for-10-years?page=1#post_8840597
Expand
What you and @Sachin9811 mention hold true.
BlueFlash wrote:Well it was able to outperform because it's not a true "bluechip fund". Has a 10% allocation to midcap to generate Alpha, same as Mirae Large Cap.
That's the thing: Which one will outperform, we don't know... Yesterday/Today it's Canara, Tomorrow it might be other... The whole point of owning an Index Fund is not to be the top performer, but rather be the median one.
What you and @Sachin9811 mention hold true.
Click here to reply
Reply
Agree expenses are less but still double the index fund. These things matter over long run. To be honest, even I have invested in the CR BC fund. But more investment is in index funds.
There are many ifs and buts for an active fund. If the fund manager changes, they dont catch a market cycle, they increase expense ratio. Over long run, v difficult to deliver outperformance over benchmark.
You have selected CR blue chip fund out of so many schemes. But do you know there are many other schemes that are not in existence today, they have closed down because of under performance. This is survival bias.
So, just to expect outperformance by CR for another 10-20 years, would be too much. Ultimately almost all funds reverses to mean.
To summarise, if you want to invest and forget do index or do etf if have demat.