Best exchange traded funds in india
Just finished reading The Intelligent Investor, the greatest investor of all times Benjamin Graham points out that Index funds are one of the best instruments for investing, that way you will never miss the next Reliance, TCS, Infosys, etc. Also instead of investing regularlybest exchange traded funds in india if one park the money in a savings bank account and wait may be for 1 or two years for the Nifty PE to go down 18 and then invest? It is made of top 50 companies of India. I can help identify, prioritize and quantify these Financial Goals.
I can help identify, prioritize and quantify these Financial Goals. Although history tells us that diversified MF are best investment vehicles, the future may be very different. Both advocate the merits of their school of thought. In those markets, most actively managed funds are not able to beat their benchmark indices. I help people align their investments with their real financial goals.
Although ETFs have their own set of problems like tracking error, commission on each purchase or sale, liquidity etc. Also, there may be very few value stocks available over a period of time. The author s of the content published in the site www.
So how are ETFs able to charge so less? Investing in an ETF will help you ride market upswings even as you go about best exchange traded funds in india a portfolio of stocks or MF schemes. You have covered good details and brought us to point of thinking. Lot of it may have to do with consumer awareness. When we redeem our units, either the cash portion of the portfolio is utilised or a part of the portfolio is sold and we are paid for our units.
Performance of ETF in matured markets is well documented. Once I feel the PE is comfortable either price reduces or earnings increaseI will use MF switch transaction to ramp up equity in my portfolio. So how are ETFs able to charge so less? The point I am trying to make is that most MF in developed markets are not able beat their underlying index.
So why not invest in the index itself, which will at least come at a much lower expense ratio. Needless to say it was an eye opener, so it says discipline is the key when it comes to MF. And because of this, quite a few Indian mutual funds are able to give better returns than ETFs. Information herein is believed to be reliable but Arjun Parthasarathy Editor: Most people reading Stable Investor would be fully convinced even Best exchange traded funds in india am that investing in well diversified Mutual Funds for a reasonably long period fetches the best possible returns.
India has a long way to become mature market. Comments Thanks for the blog. It is made of top 50 companies of India. Also instead of investing regularlywhat if one park the money best exchange traded funds in india a savings bank account and wait may be for 1 or two years for the Nifty PE to go down 18 and then invest? This difference gives rise to an important advantage of ETFs over traditional funds:
For example the recent induction of Bosch; the one that has a very high PE compared to its peers. I skipped an important meeting today to finish reading your analysis. That is exactly my point. Let us take the example of Nifty I was only hoping that the folks who choose scrips for the indexes will do a fair job.
Specifically, investors can trade ETFs throughout the trading day as in stocks. Based on this logic, my understanding is that in times to come, the gap between returns from an ETF and return from a MF will reduce. I do not think running a fake ETF is possible. Most of the actively managed funds thrive on the 'stars' from the 'past performance'.