Today I am sharing some questions that I have answered recently. I hope they are helpful to you as well. Q: On tracking error, is it even a relevant parameter that should be considered while making a decision regarding which fund to invest? Is their a data source which captures the tracking error across various […]
Chasing alpha – Aren’t market returns sufficient?
To all alpha chasers – “Don’t risk what you have and what you need for what you don’t have and don’t need.” I am sure you have been in a situation on the road, when you see vehicles in the other lane moving faster, manoeuvre yourself to get there, only to realise that the lane […]
[Funny Money] Index Funds are safe
Go out on Quora and you will find DIY investors asking – “I want to invest in safe index funds. Can I put all my money there?” In fact, I recently had a first hand experience. A new investor was speaking with me. “See I am afraid of the stock markets – stocks or mutual […]
Equal Weight Nifty 50 – the reality so far
In the past few years, there is a spate of launches of smart Beta funds or semi passive or index fund with a minor twist. Adjusted for volatility, quality, momentum, weights, caps – you can have your pick. One of the latest smart beta NFOs is the ABSL Equal Weight Nifty 50 Index fund. Seems […]
Is Motilal Oswal S&P 500 Index Fund a good fit for international diversification?
Motilal Oswal S&P 500 Index fund is the upcoming new fund offer from Motilal Oswal AMC with the theme of providing international diversification to investment portfolios. Why International Diversification? There is an important reason for it. As per World Bank, India has a roughly 3% share of world GDP. It means international diversification is an […]
Nifty Next 50 – Is this the Gold for passive investors?
You believe active investing is overdone. That fund managers are overrated. They use ill-structured index benchmarks to show alpha where none exists. In the garb of this false alpha, they rip investors off with the exorbitant fees. For you, index funds and ETFs are the God’s gift to investors and his Avatar is none other than […]