December 23, 2012 11:04 pm
Friends/Experts, kindly help me on selecting a good Equity Index MF or ETF. Share any good links to know more. Thanks.
index funds in India still have high expense ratio for an index fund and significant tracking errors wrt Nifty or Sensex. Many diversified equity funds have outperformed these.
While popular in US because of low expense ratios these funds have not caught on in India
Goldman Sachs is one the AMC with largest AUM in index ETFs but that is still smaller than many actively managed funds.
Programs are being developed to eliminate fund managers in Index funds. So perhaps in the future they will be attractive options.
Here is a step by step guide for equity MFs
for ETFs considerations are
low expense ratio, high assets under management (related to expense ration) and high trading vol for liquidity
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