Thursday, February 9, 2023
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Mutual Funds

Best Index Funds With Lowest Expense Ratio To Invest In 2021

MtR by MtR
June 13, 2021
in Mutual Funds
0


How to choose the best or top Index fund?

How to choose the best or top Index fund?

Choice of the index fund should largely be based considering the 2 aspects:

Related articles

ELSS mutual fund inflows drop over 48% in July: Should you invest?

August 10, 2022

What should investors in China and Taiwan funds do now?

August 9, 2022

1. Low expense ratio: The expense ratio is charged from investors for management of the fund and other fee etc.

2. Tracking error: This is any deviation in the fund’s return from the index return. Say there is one index fund A and another B, for index fund A- tracking error is 0.75% when compared to the benchmark and while it is 0.25% in the case of Index fund B. Then in such a situation one should definitely be opting for an index fund that has a lower tracking error or deviation from benchmark returns.

How to invest in index funds?

How to invest in index funds?

For investing in index funds in the case of which you can even start a SIP, STP etc. there is no requirement of having a demat account. This is true of open ended index funds and the same can be invested into via the company’s or AMC’s portal directly.

Top Index Funds With Lowest Expense Ratio:

Top Index Funds With Lowest Expense Ratio:

It is to be noted that as discussed above tracking error is another important metric that investors cannot and should not overlook when betting on index funds, as closer the index fund to the index in terms of return, the more profitable shall be your investment. For now we are considering some of the top index funds that you can consider for investment basis low expense ratio. Note we are typically considering index funds that command a fund size of over Rs. 1000 crore.

FundExpense ratioAbsolute returns 1 year in %Absolute returns 3 yrs in %Absolute returns 5 yrs in %
UTI Nifty Index fund- Growth0.29%57.0450.14101.31
HDFC Index Fund- Nifty 50 Plan0.40%56.6649.0699.54
HDFC Index Fund – Sensex Plan0.40%53.9450.3103.32
Edelweiss NIFTY PSU Bond Plus SDL Index Fund 2026 – Regular Plan – Growth0.31%NA being a new fund

1.	UTI Nifty Index fund- Growth:

1. UTI Nifty Index fund- Growth:

The new risk-o-meter suggests the fund to carry moderately high risk. Nonetheless, it is a CRISIL 3-star rated fund that signifies average performance among peers. Fund size is Rs. 3669 crore and NAV of the fund as on June 11 is 104. This fund carries an expense ratio of 0.29%.

1-year return from the fund is 57.03 percent against Nifty 50 TRI of 57.42%, suggesting a low tracking error during the period.

Top holdings of the fund include RIL, HDFC Bank, Infosys, HDFC, ICICI Bank, TCS, Kotak Mahindra etc.

2.	HDFC Index Fund- Nifty 50 Plan:

2. HDFC Index Fund- Nifty 50 Plan:

This is again a 3-star CRISIL rated fund with an asset size of Rs. 2928 crore. Risk-o-meter for the fund suggests it to be a moderately high risk bet. NAV of the fund as on June 10 is 144.5. In comparison to the Nifty TRI of 57.42% over a period of 1 year, the fund has offered a return of 56.66%. SIP investment into the fund can be started for as less as Rs. 500.

Top holdings of the fund include RIL, ICICI Bank, HDFC Bank, HDFC, Infosys, TCS, Kotak Mahindra and HUL among others

 3.	HDFC Index Fund - Sensex Plan:

3. HDFC Index Fund – Sensex Plan:

This is again a 3-Star CRISIL rated fund. Against the benchmark SENSEX TRI of 54.7% return in the last one year, the fund has yielded return of 53.94%. Asset size of the fund is Rs. 2210 crore.

Top holdings of the fund include RIL, HDFC twins, ICICI Bank, Infosys, TCS, Kotak Mahindra Bank etc.

4.	Edelweiss NIFTY PSU Bond Plus SDL Index Fund 2026 - Regular Plan - Growth

4. Edelweiss NIFTY PSU Bond Plus SDL Index Fund 2026 – Regular Plan – Growth

The fund is not rated by CRISIL and carries a moderate risk. The expense ratio of the fund is 0.31%. The assets under management of the fund are to the tune of Rs. 1362 crore. NAV was quoting at 10.33. The fund has over 96 percent corpus into debt securities. Notably it is a newly launched index fund that came up in March 2021

Conclusion:

Conclusion:

Given the recent traction in mutual fund investment category and the record highs the benchmark indices in India are hitting, index funds can be the safest route to gain exposure to equity markets. In fact experts suggest an allocation of between 5-10% in Index fund in one’s mutual fund investment mix.

Disclaimer:

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor.

GoodReturns.in





Source link

Related Posts

ELSS mutual fund inflows drop over 48% in July: Should you invest?

by MtR
August 10, 2022
0

According to monthly data issued by the Association of Mutual Funds in India, net positive inflows to equity mutual funds...

What should investors in China and Taiwan funds do now?

by MtR
August 9, 2022
0

After diversifying to the US markets, Indian investors had sometime back taken a fancy to the Greater China region, comprising...

How To Handle Erratic Bond Markets – Fortune India

by MtR
August 9, 2022
0

How To Handle Erratic Bond Markets  Fortune India Source link

Money Guru: 10 funds for financial independence, this 15th August – details – Zee Business

by MtR
August 9, 2022
0

Money Guru: 10 funds for financial independence, this 15th August - details  Zee Business Source link

Sen. Rubio questions Thrift Savings Plan’s exposure to Chinese companies in new mutual fund window

by MtR
August 9, 2022
0

The $706.9 billion Thrift Savings Plan, the retirement plan for 6.6 million federal employees and members of the uniformed services,...

Load More
  • Trending
  • Comments
  • Latest

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021

Tips for checking smoke alarms during daylight saving time

March 12, 2022

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021

What will Durham County education bonds pay for? A full list

July 8, 2022
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Industrial Lubricants Market to Reach $71 Billion by 2027.

August 10, 2022

Recent News

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter