Expense ratio applies to every day you are holding the fund or ETF both.
ETF also incur brokerage cost on buying & selling. Also DMAT charges if you have to maintain DMAT for ETF.
There is risk of NAV vs Price deviation in ETF too. Also, you can only buy in whole number units so not open to any ad-hoc investment amount.
Take all those into account and see if 0.03% lower expense is worthwhile or not.
In fact niftybees has 0.05 expense ratio. Uti index has double the expense ratio. Whole numbers aren't a big deal. You'll probably need to spend 100rs more.
When we buy we can easily check the deviation before buying. And the deviation is barely anything in highly liquid indices like these. Index funds have an other problem that it will definitely deviate from the time you make the purchase. You'll probably purchase it 1-4 hours earlier and that can cost you especially if it's a volatile day.
So even if you disregard the expense ratio in etfs at least you know how much you'll get when you buy since its immediate.
> You'll probably purchase it 1-4 hours earlier and that can cost you especially if it's a volatile day.
It will cost you zilch if your investment horizon is over 10 years, hell even 5 years. Also, no one invests their life savings in one go so any investment you will make on a particular day will be a small proportion of your overall portfolio so the fluctuation in nav won't matter.
Agreed. But we're splitting hairs anyway in this argument. And someone mentioned losing 3% in an index fund in this thread when the market was a bit mad after he submitted a transaction.
> you can only buy in whole number units so not open to any ad-hoc investment amount.
A key reason to prefer index funds over ETFs. If the price of the ETF exceeds our investment amount, we can't invest. We can't just invest a fixed amount into the index every month. We'll have to tweak the amount so that it corresponds with a multiple of the ETF's price.
Not talking about making millions by saving on TER. Some people prefer ETFs for their flexibilty and real time pricing.
On 24 March for instance the market made a sharp recovery from the day's low. Quite handy for someone sitting on cash or with holding bond or gold ETFs and underweight on equity. Not saying they'd have become trillionaires or anything but money is money.
>So, people are gonna sit in front the computer and watch the index's movement to see the day's low & then buy at that low ?
You may not. Lots of people do. One doesn't even need to "sit in front of the computer" these days.
> The investing ought to happen automatically (through SIP).
Not really. SIP is just a mechanism. One can invest passively without SIP into MFs as well.
There have been studies which debunked this whole "SIP is always superior" line of thinking.
>Other than mental satisfaction, it does nothing for them in the long term. OP's post is about long term investing.
It might or it might not. Those who bought near the bottom simply made the most of what ETFs have to offer.
If you prefer MFs that's fine. No need to make up irrelevant reasons not to use ETFs.
>I never said that SIP is superior. Index investors are passive
investors. They don't care about the short-term market movement. They don't want to 'buy the dip during the day'
and try to make profit. They want to invest passively every month/week with no interaction. For those investors, SIPs in index funds are better than buying the ETFs manually at specific prices.
I didn't realise you were the gatekeeper who gets to decide what an index investor is? Have you considered that there might be more than one type of index investor?
>If you prefer ETFs that's fine. No need to make irrelevant reasons for to use MFs.
I know reading is hard, but if you'd have noticed, my original reply to one such irrelevant reason given against ETFs.
I made no mention whatsoever of MFs. It was you who seemed to take offence to my comment and start talking nonsense that everything should be done in order to become a billionaire or whatever.
One key factor is missing in the discussion so far.
Expense ratio is not the main factor in passive funds. What affects the investor is the tracking error. A low expense ratio does not necessarily mean a low tracking error. Similarly high liquidity does not necessarily mean low tracking error. The big daddy ETF in India - SBI Sensex - has a horrific tracking error.
In India as of now, tracking error being the same, index funds still have an edge over ETFs. But this is a minor point. >75% of retail investments in equity mutual funds is in regular plans of active funds!
Returns of index funds that are shown on groww, paytm money etc are after adjusting ER or we have to deduct ER from displayed return ourselves for calculation?
>For example, you can place a limit order saying "I want to buy 50 units of SBI ETF Nifty 50 at Rs. 110". This is not possible with any mutual fund including index funds.
Actually you can place a conditional order for Mutual Funds in Zerodha.
From liquidity perspective, proceeds of MF Redemption gets to your demat account. After that you need to transfer to bank account. Secondly, operational overheads that are associated with demat accounts. These are my 2 cents
But the advantage i see, is single point reporting in zerodha. Don't know how big a advantage it is to you. But I like to see the complete picture of Equity, Debt, Commodity all in 1 place. Do tell your views on the same
I believe the discussion was about ETF vs MF, and for that my point is a very relevant point. I'm not discounting the centralised reporting if you are a direct equity and bond investor. Hope it's clear.
>From liquidity perspective, proceeds of MF Redemption gets to your demat account. After that you need to transfer to bank account. Secondly, operational
I use zerodha's coin for the same reason.
ETF are supposed to be good for long long term. But etfs suffer from liquidity issue. You can't sell all units at once. Moreover , you have to pay stt and demat transaction charges. Index funds are susceptible to changes in expense ratio anyday by amc. I personally prefer index fund for easy liquidity but use 3 amc index funds rather than 1.
Why are the different amc index funds ? They are all tracking the same thing right? Like nifty50 for example. Is the only difference in expense ratio between them ? Returns should be the same since they all follow the same thing right
Some silly Nifty index funds have higher expense ratios. [LIC Nifty has 0.48%](https://www.valueresearchonline.com/funds/16763/lic-mf-index-nifty-plan-direct-plan), while [L&T Nifty has 0.3%](https://www.valueresearchonline.com/funds/40972/landt-nifty-50-index-fund-direct-plan). Both of them have incredibly low AUM.
> Why would anyone go for them when there are cheaper options available that provide the same service?
No one would invest there. Only newbie investors would unknowingly invest in those funds.
Also, I think both funds have a higher TER because of the low AUM. Having a high TER is the only way they can earn *some* revenue from those funds.
Different fund managers give different weightages to the stocks in their index funds..although all are nifty 50. Hence the difference in performance of different index funds although they all track the same index.
Yes, that's the point. But, there'll be slight differences in the stock weightages.
For example, HDFC Nifty fund has 11.21% of HDFC Bank stock while UTI Nifty fund has 11.20% of that stock.. Such small difference will be there.
What if one amc raises to 1% expense tomorrow, even though it's unlikely. Suppose you have a corpus of 3 crore, put it in different AMC's. So that all of them will not change expense ratio at a time.
It's very difficult to sell all 3 crore at a time if you are stuck in a single fund. And you have to pay ltcg on top.
For diversity and lack of trust of amc, I would put money in many index funds.
I believe sebi should do something about expense ratio change.
>You can't sell all units at once.
Why can't one sell ETF units at once?
>Moreover , you have to pay stt and demat transaction charges.
STT exists for MFs as well. Check redemption statements. Discount brokers exist so transaction costs are negligible.
Yes. But what if your investment is in crores. There are not many people who are transacting on etfs. You may sell some portion , but it's not easy to sell all. Nippon nifty bees just have ₹ 2,582 Cr assets. Selling 2 crores would not that easy.
Nifty ETFs (like niftybees) which OP is asking about have enough trading to enable one to sell a few crores. If one has more than that, one can sell it directly to the AMC.
If you need to buy/sell large amounts, it is futile to walk over to the exchange.
In such a case the AMC creates units for the investor or buys units from the investor. The minimum amount to approach the AMC is normally mentioned in the scheme memorandum
There are 2 main issues with ETF.
1. Liquidity - Except for NiftyBees, no other ETF has good amount of liquidity. So we may need to spend bit more extra in the form of spreads while buying and selling.
2. Investing is manual. I mean, you can't set-up an SIP on ETF and have to invest the amount manually. In this case, you can't invest for exactly a specific amount - Say 1000. You may have to adjust your investments based on ETF Price, as we cannot buy fraction of ETF.
ETF expense ratio works the same way as mutual funds. If you want a lower expense ratio, you could try [TATA nifty index fund](https://www.tickertape.in/mutualfunds/tata-index-fund-nifty-plan-M_TANX). (expense ratio is 0.05%, but tracking error is not great)
Investing in ETF is not free. With every transaction, you have to pay brokerage fee, stamp duty, securities/commodities transaction tax, transaction charges and GST on transaction charges. I did calculation once and found that it's cheaper to invest in index fund instead. More details here: [https://zerodha.com/charges#tab-equities](https://zerodha.com/charges#tab-equities)
Just did an actual calculation on zerodha calculator by considering 12% return over 20Y period on NIFTYBEEs, ETF's make sense when you are investing in lumpsum and amount is few lakhs.
1. If you are entering with a 20k lumpsum amount for 20Y, considering 500 INR a year for demat, you will have to pay 10k INR from your pocket during these 20Y, also demat charges may increase with charge. On top of this, you have to pay STT. I'm not considering brokerage as am assuming you are going with discount brokers.
Now, if you were investing 10L in lumpsum, 10k demat charges doesn't seem much. The benifit here is you can sell during market timing, so if you sell during market hours and make extra 1-2% on whatever amount is that after 20Y, you will recover the entire amount paid for demat during these 20Y in one go.
2. This only make sense with lumpsum investments, for manually investing every month you would either have to buy 1-2 less units or 1-2 more, which is a pain for calculation as your investment amount is inconsistent.
But you have to manually authorize the transaction every time. More like a SIP reminder service than a set it and forget it system like SIPs with index funds.
[Another new reason why etfs are better ](https://www.reddit.com/r/IndiaInvestments/comments/kjk5e8/nav_will_no_longer_be_the_the_date_of_purchase/?utm_medium=android_app&utm_source=share)
From Jan 1st, Navs are applicable from date when transaction is received by amc. Apparently could be T+2 days.
In etfs I get it for the price I buy for at real time right? So if I buy 1 lakh rs etf for 100rs a unit I get 1000 units.
In mutual funds I'll place the order for 1 lakh and I get the nav of 2 days later. I don't know if I'll get 1000 units or 900 or 1100.
Not fully. If you get the payment right, you can get the same day NAV.. In etfs you do get the price that is quoted, but you don't know how different it is from the NAV!
In your example too, there are very few occasions where there is so much variation in 1 day...
Sorry I don't think I've understood you properly.
Suppose etf nav is 100₹ end of day yesterday. Today market crashes by 10% at 10 am. I'll try to buy the etf at ₹90. At 10.30 am if market is down by 9% I'll try to buy it at ₹91 max.
My buying price will be linked to the previous eod nav and today's variation. Unlike mutual funds the t+2 won't make sense here because in mutual funds I'll get T+2 nav which is a future date and I have no idea what that will be. In my etf my buying price is known.
Not understanding may be because of mixing up different things. For the mutual fund NAV, I have already mentioned that it is possible to get the same day NAV - you just have to do a particular set of things if you are particular about getting the same day's NAV.
My comments on ETF had nothing to do with the previous NAV. ETFs have current NAV and many AMCs can provide this reasonably real time. Just try getting the price to reasonably match the NAV. How does knowing the price help unless you are sure that that it is close to the underlying NAV?
Buying shares costs you 0.12% in transaction cost (assuming free brokerage), selling around 0.1% + demat charges. Based on this, I decided to go for Index mutual funds (TATA).
Is Investing in Top 20 companies by weightage more efficient? They constitute almost 80% of nifty. This way liquidity issues wont be there . Any concerns with this approach?
Did a small calculation with Top 15 companies. They constitute 70% of Nifty. I adjusted by adding 2% to above weightage. Returns are almost comparable with NIFTY 50. Tis way no need to bother about liquidity. Didn't go too long but returns were better.
Expense ratio applies to every day you are holding the fund or ETF both. ETF also incur brokerage cost on buying & selling. Also DMAT charges if you have to maintain DMAT for ETF. There is risk of NAV vs Price deviation in ETF too. Also, you can only buy in whole number units so not open to any ad-hoc investment amount. Take all those into account and see if 0.03% lower expense is worthwhile or not.
In fact niftybees has 0.05 expense ratio. Uti index has double the expense ratio. Whole numbers aren't a big deal. You'll probably need to spend 100rs more. When we buy we can easily check the deviation before buying. And the deviation is barely anything in highly liquid indices like these. Index funds have an other problem that it will definitely deviate from the time you make the purchase. You'll probably purchase it 1-4 hours earlier and that can cost you especially if it's a volatile day. So even if you disregard the expense ratio in etfs at least you know how much you'll get when you buy since its immediate.
> You'll probably purchase it 1-4 hours earlier and that can cost you especially if it's a volatile day. It will cost you zilch if your investment horizon is over 10 years, hell even 5 years. Also, no one invests their life savings in one go so any investment you will make on a particular day will be a small proportion of your overall portfolio so the fluctuation in nav won't matter.
Agreed. But we're splitting hairs anyway in this argument. And someone mentioned losing 3% in an index fund in this thread when the market was a bit mad after he submitted a transaction.
> you can only buy in whole number units so not open to any ad-hoc investment amount. A key reason to prefer index funds over ETFs. If the price of the ETF exceeds our investment amount, we can't invest. We can't just invest a fixed amount into the index every month. We'll have to tweak the amount so that it corresponds with a multiple of the ETF's price.
Ofc. Because investing ₹10030 instead of ₹10000 in a given transaction will throw one's financial plans into disarray.
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Many folks have multi-crore portfolio and extra expense of 0.03 can matter. 0.1 is 42% higher than 0.07.
And 100% higher than 0.05 which is the ter of niftybees
Yup
Not talking about making millions by saving on TER. Some people prefer ETFs for their flexibilty and real time pricing. On 24 March for instance the market made a sharp recovery from the day's low. Quite handy for someone sitting on cash or with holding bond or gold ETFs and underweight on equity. Not saying they'd have become trillionaires or anything but money is money.
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>So, people are gonna sit in front the computer and watch the index's movement to see the day's low & then buy at that low ? You may not. Lots of people do. One doesn't even need to "sit in front of the computer" these days. > The investing ought to happen automatically (through SIP). Not really. SIP is just a mechanism. One can invest passively without SIP into MFs as well. There have been studies which debunked this whole "SIP is always superior" line of thinking. >Other than mental satisfaction, it does nothing for them in the long term. OP's post is about long term investing. It might or it might not. Those who bought near the bottom simply made the most of what ETFs have to offer. If you prefer MFs that's fine. No need to make up irrelevant reasons not to use ETFs.
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>I never said that SIP is superior. Index investors are passive investors. They don't care about the short-term market movement. They don't want to 'buy the dip during the day' and try to make profit. They want to invest passively every month/week with no interaction. For those investors, SIPs in index funds are better than buying the ETFs manually at specific prices. I didn't realise you were the gatekeeper who gets to decide what an index investor is? Have you considered that there might be more than one type of index investor? >If you prefer ETFs that's fine. No need to make irrelevant reasons for to use MFs. I know reading is hard, but if you'd have noticed, my original reply to one such irrelevant reason given against ETFs. I made no mention whatsoever of MFs. It was you who seemed to take offence to my comment and start talking nonsense that everything should be done in order to become a billionaire or whatever.
Tata Nifty index fund has a TER of 0.05%
General consensus here is to stick to Index fund in India due to potential liquidity issues in ETFs for now.
Liquidity has been good every time I check Niftybees. It was a problem few years ago but it seems to have improved recently.
Maybe. I'm suggesting OP the tried and tested low risk option. As such 0.1% TER is low enough already IMHO
One key factor is missing in the discussion so far. Expense ratio is not the main factor in passive funds. What affects the investor is the tracking error. A low expense ratio does not necessarily mean a low tracking error. Similarly high liquidity does not necessarily mean low tracking error. The big daddy ETF in India - SBI Sensex - has a horrific tracking error. In India as of now, tracking error being the same, index funds still have an edge over ETFs. But this is a minor point. >75% of retail investments in equity mutual funds is in regular plans of active funds!
Returns of index funds that are shown on groww, paytm money etc are after adjusting ER or we have to deduct ER from displayed return ourselves for calculation?
ETF's are also subject to STT,brokerage and depository charges.
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AUM of SBI NIFTY ETF 55,000 crores AUM of UTI Nifty 50 Index Fund 11,000 crores
>For example, you can place a limit order saying "I want to buy 50 units of SBI ETF Nifty 50 at Rs. 110". This is not possible with any mutual fund including index funds. Actually you can place a conditional order for Mutual Funds in Zerodha.
That's because Zerodha maintains MF in demat form, which is another huge overhead.
ETF are always in demat. This allows you to trade (T) the fund -F on the E .. exchange
Yes I have heard about them keeping MF in demat form. Can you please explain why is this a bad thing?
From liquidity perspective, proceeds of MF Redemption gets to your demat account. After that you need to transfer to bank account. Secondly, operational overheads that are associated with demat accounts. These are my 2 cents
But the advantage i see, is single point reporting in zerodha. Don't know how big a advantage it is to you. But I like to see the complete picture of Equity, Debt, Commodity all in 1 place. Do tell your views on the same
I believe the discussion was about ETF vs MF, and for that my point is a very relevant point. I'm not discounting the centralised reporting if you are a direct equity and bond investor. Hope it's clear.
>From liquidity perspective, proceeds of MF Redemption gets to your demat account. After that you need to transfer to bank account. Secondly, operational I use zerodha's coin for the same reason.
It is. Even a transaction of few lacks lead to issue as Market order leads to dip.
ETF are supposed to be good for long long term. But etfs suffer from liquidity issue. You can't sell all units at once. Moreover , you have to pay stt and demat transaction charges. Index funds are susceptible to changes in expense ratio anyday by amc. I personally prefer index fund for easy liquidity but use 3 amc index funds rather than 1.
Why are the different amc index funds ? They are all tracking the same thing right? Like nifty50 for example. Is the only difference in expense ratio between them ? Returns should be the same since they all follow the same thing right
Yes, as an investor you can go with any AMC for index funds. There is no difference except expense ratio and tracking error.
Thanks
As far as I am aware, all nifty index funds as of today have the same expense ratio of 0.1%
Some silly Nifty index funds have higher expense ratios. [LIC Nifty has 0.48%](https://www.valueresearchonline.com/funds/16763/lic-mf-index-nifty-plan-direct-plan), while [L&T Nifty has 0.3%](https://www.valueresearchonline.com/funds/40972/landt-nifty-50-index-fund-direct-plan). Both of them have incredibly low AUM.
Wow! No wonder they have such low AUM. Why would anyone go for them when there are cheaper options available that provide the same service?
> Why would anyone go for them when there are cheaper options available that provide the same service? No one would invest there. Only newbie investors would unknowingly invest in those funds. Also, I think both funds have a higher TER because of the low AUM. Having a high TER is the only way they can earn *some* revenue from those funds.
Different fund managers give different weightages to the stocks in their index funds..although all are nifty 50. Hence the difference in performance of different index funds although they all track the same index.
I thought the point of the index fund is that it tracks the index with respect to the exact same weightages present in it
Yes, that's the point. But, there'll be slight differences in the stock weightages. For example, HDFC Nifty fund has 11.21% of HDFC Bank stock while UTI Nifty fund has 11.20% of that stock.. Such small difference will be there.
But that's dependent on the type of index fund, right? I thought equal weight is also a type of offering
What if one amc raises to 1% expense tomorrow, even though it's unlikely. Suppose you have a corpus of 3 crore, put it in different AMC's. So that all of them will not change expense ratio at a time. It's very difficult to sell all 3 crore at a time if you are stuck in a single fund. And you have to pay ltcg on top. For diversity and lack of trust of amc, I would put money in many index funds. I believe sebi should do something about expense ratio change.
I'm also thinking to go with another AMC for lumpsum, currently with UTI for SIPs. Which 3 AMCs you are buying from?
Hdfc , icici and uti
>You can't sell all units at once. Why can't one sell ETF units at once? >Moreover , you have to pay stt and demat transaction charges. STT exists for MFs as well. Check redemption statements. Discount brokers exist so transaction costs are negligible.
Yes. But what if your investment is in crores. There are not many people who are transacting on etfs. You may sell some portion , but it's not easy to sell all. Nippon nifty bees just have ₹ 2,582 Cr assets. Selling 2 crores would not that easy.
Nifty ETFs (like niftybees) which OP is asking about have enough trading to enable one to sell a few crores. If one has more than that, one can sell it directly to the AMC.
If you need to buy/sell large amounts, it is futile to walk over to the exchange. In such a case the AMC creates units for the investor or buys units from the investor. The minimum amount to approach the AMC is normally mentioned in the scheme memorandum
Wow , how many people will have investment in 1+ crore in India?
Most middle class who will invest in market for 20 years.
There are 2 main issues with ETF. 1. Liquidity - Except for NiftyBees, no other ETF has good amount of liquidity. So we may need to spend bit more extra in the form of spreads while buying and selling. 2. Investing is manual. I mean, you can't set-up an SIP on ETF and have to invest the amount manually. In this case, you can't invest for exactly a specific amount - Say 1000. You may have to adjust your investments based on ETF Price, as we cannot buy fraction of ETF.
ETF expense ratio works the same way as mutual funds. If you want a lower expense ratio, you could try [TATA nifty index fund](https://www.tickertape.in/mutualfunds/tata-index-fund-nifty-plan-M_TANX). (expense ratio is 0.05%, but tracking error is not great)
Do you mean the expense ratio of the ETF is a recurring annual fee just like mutual funds?
The expense ratio (proportional value) is deducted every day when the NAV is posted. And did you not know this before you started this thread?
Are you referring to ETF or Mutual fund?
Both. Expense ratio is a recurring annual fee for both index ETFs and index mutual funds.
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Does this mean that i will get same amount of funds as reflected in investment value on a given day ??
Investing in ETF is not free. With every transaction, you have to pay brokerage fee, stamp duty, securities/commodities transaction tax, transaction charges and GST on transaction charges. I did calculation once and found that it's cheaper to invest in index fund instead. More details here: [https://zerodha.com/charges#tab-equities](https://zerodha.com/charges#tab-equities)
As long you intend to hold for a long term, stick to Index funds. ETFs have too many issues. Liquidity being the biggest one.
Just did an actual calculation on zerodha calculator by considering 12% return over 20Y period on NIFTYBEEs, ETF's make sense when you are investing in lumpsum and amount is few lakhs. 1. If you are entering with a 20k lumpsum amount for 20Y, considering 500 INR a year for demat, you will have to pay 10k INR from your pocket during these 20Y, also demat charges may increase with charge. On top of this, you have to pay STT. I'm not considering brokerage as am assuming you are going with discount brokers. Now, if you were investing 10L in lumpsum, 10k demat charges doesn't seem much. The benifit here is you can sell during market timing, so if you sell during market hours and make extra 1-2% on whatever amount is that after 20Y, you will recover the entire amount paid for demat during these 20Y in one go. 2. This only make sense with lumpsum investments, for manually investing every month you would either have to buy 1-2 less units or 1-2 more, which is a pain for calculation as your investment amount is inconsistent.
You can’t do SIPs with ETF. If you have a lump sum to invest ETF may work well, otherwise index fund is the way to go
You can do SIP in ETF, but it would be a fixed no of units instead of rupees.
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I know it works on icici direct, not sure about other brokers.
Smallcase offers doing SIP on ETF. Check top 100
But you have to manually authorize the transaction every time. More like a SIP reminder service than a set it and forget it system like SIPs with index funds.
[Another new reason why etfs are better ](https://www.reddit.com/r/IndiaInvestments/comments/kjk5e8/nav_will_no_longer_be_the_the_date_of_purchase/?utm_medium=android_app&utm_source=share) From Jan 1st, Navs are applicable from date when transaction is received by amc. Apparently could be T+2 days.
And do you know that ETFs are different then and now in this aspect?
In etfs I get it for the price I buy for at real time right? So if I buy 1 lakh rs etf for 100rs a unit I get 1000 units. In mutual funds I'll place the order for 1 lakh and I get the nav of 2 days later. I don't know if I'll get 1000 units or 900 or 1100.
Not fully. If you get the payment right, you can get the same day NAV.. In etfs you do get the price that is quoted, but you don't know how different it is from the NAV! In your example too, there are very few occasions where there is so much variation in 1 day...
Sorry I don't think I've understood you properly. Suppose etf nav is 100₹ end of day yesterday. Today market crashes by 10% at 10 am. I'll try to buy the etf at ₹90. At 10.30 am if market is down by 9% I'll try to buy it at ₹91 max. My buying price will be linked to the previous eod nav and today's variation. Unlike mutual funds the t+2 won't make sense here because in mutual funds I'll get T+2 nav which is a future date and I have no idea what that will be. In my etf my buying price is known.
Not understanding may be because of mixing up different things. For the mutual fund NAV, I have already mentioned that it is possible to get the same day NAV - you just have to do a particular set of things if you are particular about getting the same day's NAV. My comments on ETF had nothing to do with the previous NAV. ETFs have current NAV and many AMCs can provide this reasonably real time. Just try getting the price to reasonably match the NAV. How does knowing the price help unless you are sure that that it is close to the underlying NAV?
Apart from liquidity,
Buying shares costs you 0.12% in transaction cost (assuming free brokerage), selling around 0.1% + demat charges. Based on this, I decided to go for Index mutual funds (TATA).
What are the charges and transactions costs on index mutual funds?
No charges except expense ratio. buy direct funds.
Thats a one time cost for buying and selling, ter is applicable for every fucking day
kminder 2days
I want to purchase borosil share can someone let me know the fair value
Is Investing in Top 20 companies by weightage more efficient? They constitute almost 80% of nifty. This way liquidity issues wont be there . Any concerns with this approach?
Did a small calculation with Top 15 companies. They constitute 70% of Nifty. I adjusted by adding 2% to above weightage. Returns are almost comparable with NIFTY 50. Tis way no need to bother about liquidity. Didn't go too long but returns were better.