@johnlebaptiste It's actually Rs. 389 and I rounded it off.
Let's settle the issue of ETF's and liquidity once and for all - Here's my analysis of six Indian ETFs and thier trading volumes
- Thread starter onisim
- Start date
johnlebaptiste
New member
@resjudicata Who is doing this?
@resjudicata Nobody is pushing anything down investors throats. You have a choice to buy the same index fund as a MF or ETF. If ETF expense ratio is cheaper, why would I buy the MF?
By the way, index funds and ETFs are different things:
An index fund is something that tracks an "index". This can be a MF or ETF.
An ETF is a Mutual Fund that is traded on the exchange.
By the way, index funds and ETFs are different things:
An index fund is something that tracks an "index". This can be a MF or ETF.
An ETF is a Mutual Fund that is traded on the exchange.
@onisim Firstly, thanks for the exercise and sharing the results here.
I don't know where you get this impression, but I think investors that want exposure to either NIFTY or some mid-cap index as well as Indian gilts have never had any concern with availability of ETFs with adequate market depth. There may be concerns with certain ETFs, if one wanted to stick to a specific AMC only. But agnostic to AMC, there have been always ETF options like the ones you listed.
Investing in ETF has been an issue for some other asset classes/indices (foreign equity, gold, sectoral indices, small-cap etc.) There are few liquid options with low variance between NAV & price as well as low tracking error.
Further, for someone who takes exposure to markets only via mutual funds, additional cost of Demat is certainly high. Even if it's Rs. 400 per annum, If I were to hold Rs. 4 lakh, say in HDFC Sensex Fund,, I would lose much less than Rs. 400 to TER per annum. (This comparison even excludes any brokerage/STT/GST/stamp duty etc. & TER applicable to ETF.) Might matter to a small investor who prefers to invest small amounts via SIP.
I don't know where you get this impression, but I think investors that want exposure to either NIFTY or some mid-cap index as well as Indian gilts have never had any concern with availability of ETFs with adequate market depth. There may be concerns with certain ETFs, if one wanted to stick to a specific AMC only. But agnostic to AMC, there have been always ETF options like the ones you listed.
Investing in ETF has been an issue for some other asset classes/indices (foreign equity, gold, sectoral indices, small-cap etc.) There are few liquid options with low variance between NAV & price as well as low tracking error.
Further, for someone who takes exposure to markets only via mutual funds, additional cost of Demat is certainly high. Even if it's Rs. 400 per annum, If I were to hold Rs. 4 lakh, say in HDFC Sensex Fund,, I would lose much less than Rs. 400 to TER per annum. (This comparison even excludes any brokerage/STT/GST/stamp duty etc. & TER applicable to ETF.) Might matter to a small investor who prefers to invest small amounts via SIP.