This is the archive of all our articles related to how index investing or passive investing
After we reported that Only 3 out of 28 mid cap MFs consistently beat Nifty Midcap 150, many readers wished to include a mid cap index fund in their portfolio and wanted to know how to choose one. As regular readers may know, we have always maintained that the Nifty Next 50 is an excellent substitute…
Continue reading →In this article, we evaluate the performance of 207 actively managed mutual funds across eight categories to identify consistent performers. Regular readers may be aware that we have proclaimed the benefits of low-volatility investing for a few years. See Nifty Low Volatility 50: A Benchmark Index to watch out for (July 2016). We publish a low volatility…
Continue reading →With only three weeks left to go in 2022, we look at the biggest winners and losers in the NSE index universe. We look at the trailing one-year return as on 9th Dec 2022, as much of the performance falls in 2022. Disclaimer: No part of this article should be considered investment advice. One year…
Continue reading →In this article, we see how a lower expense ratio does not necessarily mean more gains for the investor using the example of two index funds: the NAVI Nifty 50 Index fund (direct plan) and the UTI Nifty 50 Index fund (direct plan) and the last one year period. It must be understood that the…
Continue reading →A reader asks, “I cannot decide between Nippon India Nifty 50 Bees ETF and UTI Nifty 50 Index Fund. The ETF has a total expense ratio of 0.05%, while the index fund’s TER is 0.2%. My friends tell me that ETF is bound to outperform the index fund over the long term and that choosing…
Continue reading →As of Aug 31st 2022, 59.5% of the total equity AUM was in Nifty 50 stocks. Here are the details and possible implications. The total equity AUM held by 40 mutual fund AMCs is Rs. 21,91,563.5357 Crores. The break-up is given below. The tables in this article are sourced from ACE MF. AMC Equity (Cr.)…
Continue reading →A reader writes, “I want to ask you if this asset allocation in index funds is right or wrong. I am not good at finance. These are the index funds which I invest in every month. Nifty 50 – 35.71% Nifty Next 50 – 35.71 % Gold Index fund – 14.28 % Mid-cap index fund…
Continue reading →This article lists six model equity portfolios by combining different equity index funds. We now have both the evidence and the variety to create such portfolios. We have mentioned several times in the past that index funds are the way to go for new mutual fund investors. Even in the mid cap and small cap…
Continue reading →This is the list of equity index funds in India with AUM and expense ratios as of Aug 21st 2022. This includes ongoing and forthcoming NFOs at the time of writing. This list is only for reference. For investment recommendations, see: Handpicked List of Mutual Funds Jul-Sep 2022 (PlumbLine). Readers may know that we publish…
Continue reading →A reader writes, “Sir, I recently read your article – Sensex vs S&P 500 vs Nasdaq 100: Which is better for the long term? In this, you have plotted the S&P 500 and the Nasdaq 100 in INR terms. Is there a way to quickly make such a comparison on our own?” As far as…
Continue reading →A reader writes, “Sir, you have repeatedly pointed out that it is hard for most active funds to beat the index, and this applies not only to large cap funds but also to mid cap and even small cap funds (when benchmarked with a mid cap index). However, can I use a hybrid like an…
Continue reading →A reader asks, “Sir, can we use Sensex or Nifty ETFs for long term goals instead of index funds? If so, which is better, Sensex or Nifty ETFs?” We recommend not using any ETF for investing because of possible price-NAV swings during times of crisis and their persistence for weeks. This can happen in any ETF…
Continue reading →In this article, we explain why conventional ways of measuring ETF tracking errors can be misleading and present an alternative. The efficiency of a passive fund (index fund or ETF) is measured by the tracking error or tracking difference. The tracking difference is simply the fund return minus benchmark return. This must be a small…
Continue reading →In this article, we tabulate index funds with the largest deviation in 1Y return (trailing as of 8th July 2022) from their corresponding indices. Regular readers may be aware that the most practical way to evaluate how efficiently an index fund is tracking its index is not the tracking error” but the return difference. For…
Continue reading →In this article, SEBI registered fee-only advisor Swapnil Kendhe discusses if passive investing aka index investing is suitable over the next 20-30 years in India. About the author: Swapnil is a SEBI Registered Investment Advisor and part of my fee-only financial planners’ list. You can learn more about him and his service via his website,…
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