Difference between Nifty 50 & Sensex - Just a small write up

One minor addition: When it comes to AMCs, nearly all have Nifty50 Fund while few have Sensex Fund. Similarly, the volume and AUM is also more for Nifty ones than Sensex funds/ETF. Also the expense ratio of Nifty funds generally is on the lower side compared to it's Sensex counterpart... basically Nifty being the more popular kid has these few advantages, at least on paper, hence generally preferred by retail investors.

BlueFlash wrote:

One minor addition: When it comes to AMCs, nearly all have Nifty50 Fund while few have Sensex Fund. Similarly, the volume and AUM is also more for Nifty ones than Sensex funds/ETF. Also the expense ratio of Nifty funds generally is on the lower side compared to it's Sensex counterpart... basically Nifty being the more popular kid has these few advantages, at least on paper, hence generally preferred by retail investors.

Hdfc sensex plan has expense ratio of 0.2%. Cheapest in nifty one is around 0.12% - Axis. 

I am not including Navi nifty as I am yet to hear from them. They haven't replied to my last email regarding updated expense ratio. 

@Ramta_Jogi https://monkeybeat.market/portfolio?index=N...50

tell me if you find this interesting, i'll try to add max drawdown to this

noobDealer wrote:

@Ramta_Jogi https://monkeybeat.market/portfolio?index=N...50

tell me if you find this interesting, i'll try to add max drawdown to this

I am not a financial advisor or planner or even a stock analyst. Not even an ardent fan of low expense ratios as my own major chunk of MF is in a over 2% expense ratio fund. Moreover, some of my funds i am deliberately keeping under "Regular" plans.

I wrote this (and others) because of some demand for the same (however, for sure, people won't stay the volatile markets for over an year or maybe 2 no matter what gyan you give them of long term)

Your thesis will be better evaluated by some stock enthusiast here on this forum.

Ramta_Jogi wrote:
my own major chunk of MF is in a over 2% expense ratio fund. Moreover, some of my funds i am deliberately keeping under "Regular" plans.

Any particular reason ?

BlueFlash wrote:
Any particular reason ?

Some funds deliver more returns than your average nifty and they move in a pre determined fashion every 4-6 years. So, for short term, I invest in them. 

At the same time, I have a IA (paid yearly) who keeps my family away from all bank mis-selling when I am not around (or when "mothers" refuse to listen to their "kids") so he is keeping a tab on the market movement of the fund and hence the regular fund with higher ER. 

Ramta_Jogi wrote:

I am not a financial advisor or planner or even a stock analyst. Not even an ardent fan of low expense ratios as my own major chunk of MF is in a over 2% expense ratio fund. Moreover, some of my funds i am deliberately keeping under "Regular" plans.

I wrote this (and others) because of some demand for the same (however, for sure, people won't stay the volatile markets for over an year or maybe 2 no matter what gyan you give them of long term)

Your thesis will be better evaluated by some stock enthusiast here on this forum.

which funds do you invest in with over 2% expense ?

Is UTI nifty 50 a good investment 

rohithkumarsp543 wrote:

Is UTI nifty 50 a good investment 

Define "good investment". Time frame, expectation of returns, risk appetite etc.

third.i.financial.advisors wrote:
which funds do you invest in with over 2% expense ?

Asia Ex-Japan fund(s)

Ramta_Jogi wrote:
Define "good investment". Time frame, expectation of returns, risk appetite etc.

Long term 15 years 

rohithkumarsp543 wrote:

Long term 15 years 

Awaiting other replies:

Define "good investment".  Expectation of returns, risk Appetite.

Ramta_Jogi wrote:

Awaiting other replies:

Define "good investment".  Expectation of returns, risk Appetite.

Dude if you're investing Passively for a retirement is UTI nifty 50 good without over diversifying. 

rohithkumarsp543 wrote:

Dude if you're investing Passively for a retirement is UTI nifty 50 good without over diversifying. 

If you already know the question to your answer, then why are you asking the question in the first place? 

rohithkumarsp543 wrote:

Is UTI nifty 50 a good investment 

Is that a question or an answer? 

Ramta_Jogi wrote:

Is that a question or an answer? 

I've been asking since last few comments. You've kept asking more questions expect answering my questions

rohithkumarsp543 wrote:

I've been asking since last few comments. You've kept asking more questions expect answering my questions

UTI Nifty 50 is a decent fund in the Large Cap Index Fund category. It has own it's pros and cons, but none the less, it's decent. For a 15 year long term investment horizon: If your entry to this fund is via SIP and not via lumpsum, then it's decent. If the exit from this fund is done via STP/SWP over a period of last 3 years or so, depending on your goal negotiability, then it's decent. If your risk appetite is high and you have the temperament to withstand seeing your investment going negative at certain times within this 15 years, then it's decent. If your expectation of the return is to beat inflation and not beyond the summation of inflation and GDP rate, then it's decent. Finally, if you are aware of the Black Swan phenomenon and agree that all above statement is just based on hindsight and historical data, then it's decent.

Just to give you a food for thought: A sip done over a period of around 7 years in Nifty50, entering from 2013 to exiting at early 2020 crash, would have given you the best case of a zero return. Yeah, that's absolute zero. Similarly, a sip done in S&P500 over a period of around 15 years, entering from 1993 to exiting at late 2008 crash, would also have given a zero return.

rohithkumarsp543 wrote:

I've been asking since last few comments. You've kept asking more questions expect answering my questions

Answers to your questions would depend on your risk appetite. 

As @BlueFlash rightly mentioned.. The 7 year return on nifty index was 0 and 12 year return (2008-2020) was 3% absolute.. That's less than what SBI savings account would have given. So you need to fine tune your expectations going forward. Then there was the lost decade of 1993-2003. Nifty index /mutual fund is not a magic wand. 15-20 year at the minimum is the time frame u need to keep looking at and then too your exit should match the peak of market. SIPs in rising markets would only give you negative investment value. Lumpsum (in present scenario) should be done below 17K mark.