4 replies on this article “Index funds list”

1. RK says:

   April 18, 2022 at 3:40 am

   Hi.

   Am a regular patron of JagoInvestor and often frequent the blog if I look for any guidance.
   This time, I want to invest in Index Funds. I read it is much better in beating the inflation than active MF investing.
   My Question is how it is better? I see SBI Index Funds last 3yr return mentioned is 14.74% whereas In Active MF investing like any of those equity based good MF, the return shown is easily more than 20% for sure.
   Iam confused, how then Index Fund is better if getting less return. Please clarify my doubt as always. Thanks

   Reply
   1. Jagoinvestor says:

      April 19, 2022 at 1:43 pm

      When you invest in index funds, you are assured that you will not perform lower than index itself.. So the comparision is true if you assume that the person might have other wise picked a low-performing active fund, which might happen with a lot of investors as they do not pick the right mutual funds or do not review them properly.

      However if you have a good advisor or process to make sure that you will pick and retain good active funds which will out perform the index, then better do it

      Manish

      Reply
2. VIGNESH BASKARAN says:

   November 26, 2011 at 8:28 pm

   @justgrowmymoney

   Thanks for answering my questions.

   I heard that if the demand for the etf is low while selling i may need to sacrifice some of the returns i earned (I meant I need to sell them in some less price than the current price at that time) is that true?

   Reply
3. justgrowmymoney says:

   November 26, 2011 at 5:35 pm

   Vignesh – Let me answer one by one.

   1. how safe are the ETF?
   For mot part there is no difference between investing in a stok and ETF. In Sector ETFs the risk is thinned out due to a number of stocks. Theoretically speaking the price of an ETF must be the same as it a NAV for a MF, technically speaking, however since all instruments are priced by supply and demand if the liuidity of the ETF is very low mispricing can exist. But all of the above ETFs are all very liquid.

   2. I have selected three etf gold bees, nifty bees and bank bees . I am goi to invest in sip in the following etf for 5000 each for the next 1 yr? Expense ratio is also 1,0.5,0.5 percent respectively.

   Very good choices. The Market, Gold and Financials.

   3. Is selecting etf from the single company any problem?
   Not really

   4.Now banking stocks are down. In a time span of one or two year it will bounce back. so i thought of investing in bank bees.
   I agree. No market recovery is sustainable without Financials going up, hisorically. Buy financials now thru SIP.

   Reply

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