Nifty 50 ETF: Due to Corona virus epidemic, the stock market has been witnessing ups and downs for the past 3 months. The market reached its record high in February this year. After which correction has come in the market. However, as the vaccination has intensified, the market is once again moving towards the level of 15000. Experts believe that in the coming few days, the Nifty will once again break the 15000 level. Currently, the market valuation is still high. Midcap and Smallcap stocks have also seen a boom. On the one hand the high valuation of the market and on the other hand the increasing cases of corona are increasing the confusion. In this situation, experts are advising risk-free investment. If you too are looking for a similar option, then Nifty 50 ETF can be a safe option for mutual funds.
What is ETF
ETFs are like mutual funds. However, the major difference between the two is that ETFs can only be bought or sold from the stock exchange. The way you buy shares. In the same way you can buy ETFs during the trading hours of the exchange. There are various types of securities in the portfolio of an ETF. Their returns are like indexes. These are listed on the stock market. They can be bought and sold there.
Why ETFs are a better option
Experts believe that investing in ETFs may be a better option for Conservative investors right now. These usually track a particular index. This is a replica of the index itself. As soon as the index rises, usually they can get the same benefit of growth. It invests in the stocks included in the index, which means that your portfolio itself becomes diversified.
Expense ratio extremely low
The specialty of the Nifty 50 ETF is that the expense ratio of the scheme included in the scheme in this segment is extremely low. The decrease in the expense ratio means that the cost of your investment will be reduced here. The expense ratio means how much you pay to the fund house every year to manage your money after investing in a fund.
You can understand the meaning of the expense ratio to be more or less, assuming that you have invested 10 thousand rupees in a fund and the expense ratio of the fund is 1.5 percent. In such a situation, you will have to pay the fund house as an expense ratio of 150 rupees a year. If you look at it another way, suppose that you have earned 10% annual return in that fund, then your actual return will be 8.5%.
Top Returning Scheme
SBI ETF Nifty 50
Expense ratio: 0.07 percent
Asset: 92966 Crore
6 month return: 18.61 percent
1-Year Return: 62.51 percent
5-Year Return: 14.95%
Value of 1 lakh in 5 years: 2 lakh
UTI Nifty ETF
Expense ratio: 0.07 percent
Asset: 23841 Crore
6 month return: 18.61 percent
1-Year Return: 62.51%
5-Year Return: 14.96%
Value of 1 lakh in 5 years: 2 lakh
Kotak Nifty ETF
Expense ratio: 0.12 percent
Asset: 1186 Crore
6 months return: 18.56 percent
1-Year Return: 62.36%
5-Year Return: 14.84 Percent
Value of 1 lakh in 5 years: 2 lakh
HDFC Nifty 50 ETF
Expense ratio: 0.05 percent
Asset: 897 Crore
6 month return: 18.62 percent
1-Year Return: 62.49%
5-Year Return: 14.92 Percent
Value of 1 lakh in 5 years: 2 lakh
ICICI Pru Nifty Next 50 ETF
Expense ratio: 0.39 percent
Asset: 1101 Crore
6 month return: 26.66 percent
1-Year Return: 57.12%
5-Year Return: 13.85%
Value of 1 Lakh in 5 years: 1.92 Lakh
(Source: Value Research)