Index funds list

POSTED BY VIGNESH BASKARAN ON November 26, 2011 12:16 am COMMENTS (2)

Hi

I am now investing in sip for 14000. Now thinking of investing in the ETF.

1. how safe are the ETF?

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.

3. Is selecting etf from the single company any problem?

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.

Please provide ur valuable comments on this

Regards
Vignesh

2 replies on this article “Index funds list”

  1. VIGNESH BASKARAN says:

    @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?

  2. 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.

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