This is the archive of all our articles related to how index investing or passive investing
The Nifty 50 Value 20 index (NV20) comprises of 20 large cap value stocks from the Nifty 50. There are currently three ETFs that track this index. So the natural question to ask is, is Nifty 50 Value 20 Index better than the Nifty 50? Let us find out! The three ETFs tracking NV20 are Kotak…
Continue reading →Avinash Luthria explains why the most important report about mutual fund investing in India was published in April 2010 – the S&P Index Versus Active Funds India report – and how there is sufficient and repeated evidence avoid active mutual funds and change the way we invest. I respect Avinash’s approach to investing especially his realistic…
Continue reading →Here is how you can replicate the returns and performance of NIFTY LargeMidcap 250 Index using Nifty 50 and Nifty next 50 Index funds. Motilal Oswal had filed an NFO application based on this index with SEBI, but this is unlikely to see the light of day (and that is good for investors). This post…
Continue reading →So many people make the mistake of assuming that just because an ETF has a lower expense ratio than an index fund, it will result in higher returns (excluding demat account fee and brokerage), There is no evidence to this. The return from an index fund or an ETF depends on several factors. In this…
Continue reading →There is no need for investors to consider the two new index from DSP: DSP Nifty 50 Index Fund & DSP Nifty Next 50 Index Fund as there are good existing options. Amusingly, in its promotional campaign DSP has admitted that beating the market will be tougher in future! We should avoid a new index fund…
Continue reading →Here are five index funds based on Sensex and the Nifty that have beat their indices in the last year! Therefore, investors should avoid such funds! Since an index fund has expenses associated with management and commissions (in the regular plan), it is impossible for an index fund to produce a return more than the index…
Continue reading →Here is how you can combine NIfty 50 (Nifty or N50) and Nifty Next 50 (NN50) index funds to create large and mid cap index portfolios. Since both N50 and NN50 index funds have been around for many years, index investors can use these two instead of new or low AUM ETF or index fund…
Continue reading →It should now be reasonably apparent to the regular freefincal reader that Index funds are becoming harder and harder to beat and that one have easily constructed a minimalist index fund portfolio suitable for all risk appetites and ages. So the question now in many active mutual fund investor is, should I now shift current active funds…
Continue reading →So a question on many lips is, “Should I now switch from large-cap funds to index funds?” the reason being the new rule about large-cap funds that 80% of their portfolio should be from the top 100 stocks in terms of full market capitalization (that is from the NSE 100). In this post, I discuss…
Continue reading →A few days ago, we had discussed, what is the best way to invest in Nifty Next 50 Index? and among the 8 choices available to invest in the Nifty Next 50 Index – which by now most readers should recognise as a high-risk, potential high-reward, hard to beat index – we had singled out three. These are…
Continue reading →By now it should be no surprise to freefincal regulars that the Nifty Next 50 (NN50) has a fantastic (though volatile) track record and most actively managed mutual funds struggle to beat it. In fact, no active fund has NN50 as its benchmark. So this naturally draws the question, what is the best way to invest in…
Continue reading →An exchange-traded fund (ETF) is one in which each unit of the fund (a basket of stocks or bonds) is traded among other unitholders via a demat account. How easily one is able to buy and sell these ETF units is referred to as liquidity. A common complaint is that Indian ETFs are not liquid enough….
Continue reading →When I was trying to compile a list of mutual fund benchmarks after the SEBI recategorization, something strange caught my eye. Value Research had included the new benchmarks in the NAV growth charts. The Nifty 100 Midcap (N100M) is a popular midcap benchmark and I noticed many funds struggled to beat it over the long…
Continue reading →Last week I gave a talk on index investing and market timing at the monthly meeting of the Tamil Nadu Investors Association. This is a private recording of the index investing part. We have already started the discussion on the marketing timing part with: Do we need to time the market? More on this will follow next…
Continue reading →Regular readers may be aware that I have repeatedly pointed out how hard it is for mutual funds to beat the NIfty Next 50 (NN50) index in terms of absolute return* and that no active mutual fund uses it as a benchmark! In this post, I classify NSE indices in terms of risk and point…
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