Index fund vs ETF vs Fund of Funds.

Nippon India Nifty Pharma ETF list today.
NSE symbol: NETFPHARMA
Issue price: Rs.14.54

#ETF

Know the index structure & what your are buying!

To keep it simple, N500 index fund is sufficient, as it covers 95% of the entire market.
Or

N100 is 78% of the market, where N50+NN50 is 80:20 ratio.
Have higher risk appetite? buy 50:50 of N50+N100.

#investing

Nifty 50 market-cap weight index - the market decides how much you are #investing in each stock - like HDFC bank -10%, RIL 10%, Adani 0.7%

N50 Equal wt - 2% invested equally in all stocks.
Eq wt gives more weightgae to bottom stocks too.

Better returns due to higher risk.

This classification tree will help you understand the different types of mutual funds.
This may help investors match their expectations & risk-taking ability with the type of fund.

Majority of them can be ignored; Try to keep things simple.

#investing
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Comparison of SPX 500 vs Nasdaq 100:

Like Nifty 500, which covers 95% of NSE,
SPX500 is a broad based index with market cap coverage of 80% vs Nasdaq 34%, a tech heavy index.

Entirely upto investor's risk appetite in choosing between the 2 indices.

#investing
img motilal

Interesting updates:

UTI MF files draft with SEBI to launch Nifty Midcap 150 Quality 50 Index Fund.

NAVI MF to launch Nifty 50 index fund with ER of 0.06%

#investing

Motilal Oswal NASDAQ 100 ETF face value split from Rs 10 to Rs 1. It will be quoting on an ex-split basis from June 17. (It will quote approx 102)

Changes in name & symbol:
Nifty 50 ETF - MOM50
Midcap 100 ETF - MOM100

NASDAQ 100 ETF - MON100
G-SEC ETF - MOGSEC

#investing

It's the weekend!
Grab a cup of coffee, in this thread I will explain

1. What are ETFs?
2. How are they different from Mutual Funds?
3. What are factors to consider while investing in ETFs?

Lets dive right in.

ETFs stand for Exchange Traded Funds

The easiest way to understand them is to think of them as Mutual Funds that are traded on the exchange just like stocks.

(technically, ETFs are nothing like Mutual Funds)

ETFs are structured as pools of investment that are inclined to

a. lower the fees associated with investment
b. shift the bulk load of fees to frequent traders of the ETF than holders
c. allow investors to invest in diverse set of securities / asset classes easily

ETFs originated after the stock market crash of 1987 in US

'Passive Investing' was the new shiny thing and investors wanted a low cost way to invest in the index without any manager actively managing their investments

Enter Nate Most

Nate Most is known as the father of ETFs
A physicist by training, Nate got the idea of ETF from warehouse receipts

Comparison of SPX 500 vs Nasdaq 100:

Like Nifty 500, which covers 95% of NSE,
SPX500 is a broad based index with market cap coverage of 80% vs Nasdaq 34%, a tech heavy index.

Entirely upto investor's risk appetite in choosing between the 2 indices.

#investing
img motilal

Know the index structure & what your are buying!

To keep it simple, N500 index fund is sufficient, as it covers 95% of the entire market.
Or

N100 is 78% of the market, where N50+NN50 is 80:20 ratio.
Have higher risk appetite? buy 50:50 of N50+N100.

#investing