Nifty 50 ETF: The stock market is at its record high. Since Diwali, the Sensex and the Nifty are reaching new highs on every trading day. In such a situation, the valuation of the market is high. During the last 6 to 7 months, the market has been continuously rising and the valuation of many stocks in the equity market has increased. A rally has also been seen in midcap along with large-cap. In the current situation, investors are confused about the possibility of a correction in the market. 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 are also looking for a similar option, then Nifty 50 ETF can be a safe option for mutual funds.
Who should invest money
Experts believe that investing in ETFs may be a better option for Conservative investors right now. ETFs or exchange-traded funds invest in a set of shares. These usually track a particular index. ETFs can only be bought or sold from the stock exchange, the way you buy shares.
Investment cost 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 invested Rs 10,000 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 in another way, suppose that you have earned 10 percent annual return in that fund, then your actual return will be 8.5 percent.
Index return
This is a replica of the index itself. That is to say, as fast as the index rises, they too can get the same benefit of growth. Another advantage is that it invests in stocks included in the index, which means that your portfolio itself becomes diversified.
HDFC Nifty 50 ETF
Expense ratio: 0.05 percent
Asset: 469 Crore
6 month return: 36.09 percent
1-Year Return: 8.32%
Launch Date: 09 December 2015
Return since launch: 12.58 percent
ICICI Pru Nifty 50 ETF
Expense ratio: 0.05 percent
Asset: 1360 Crore
6 month return: 36.05 percent
1-Year Return: 8.37%
Launch Date: March 20, 2013
Return since launch: 12.64%
UTI Nifty ETF
Expense ratio: 0.07 percent
Asset: 18647 Crore
6 month return: 36.09 percent
1-Year Return: 8.30%
Launch Date: August 26, 2015
Return since launch: 11.77 percent
Kotak Nifty ETF
Expense ratio: 0.12 percent
Asset: 879 Crore
6 month return: 36.04 percent
1-Year Return: 8.23%
Launch Date: February 2, 2010
Return since launch: 10.60 percent
Source: www.financialexpress.com
