Hefty expense ratio implies reduced returns over the long term

Expense Ratio

ETF has been able to closely match its benchmark's returns

Tracking Error

ETF has been generating better price return than bank FD

Return vs FD Rates

Good time to consider, as ETF is not in overbought zone

Entry Point

The Indian stock market has recently seen a correction due to weak earnings and foreign investor sell-offs, with broader stocks down 20-30%. Long-term investors can either focus on undervalued stocks (value approach) or high-quality companies that have become cheaper (quality approach), with the latter underperforming recently but offering strong long-term potential. For those preferring the quality style, passive funds based on indices like Nifty200 Quality30, Nifty100 Quality30, or NiftyMidcap150 Quality50 offer diversified, fundamentally strong stocks with lower volatility in downturns.

Good Time To Buy Quality Index Funds

The Nifty 100 Low Volatility 30 ETF offers stability in volatile markets. This ETF follows the Nifty 100 Low Volatility 30 index and invests in stocks with lower-than-average volatility. The ETF aims to minimize sharp price swings. It includes companies from the Nifty 100 that meet stability-focused criteria. Sectors like FMCG and Healthcare hold significant weight in the ETF.

Steady Growth, Less Stress: Discover the Nifty Low Volatility Edge

​The Indian market has several equity-oriented index funds. Some popular index funds are based on broad indices — Nifty 50, S&P BSE Sensex, Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, Nifty 500 and the Nifty Total Market Index; and thematic indices based on IT, pharma, consumption, manufacturing, defence, among others.

What are the equity index funds in India?

On valuations, the P/E ratio of the small-cap index (Nifty Small Cap 250) is similar to that of the large-cap (Nifty 100) index, at around 19-20x on two-year forward earnings (excluded loss-making companies in the aggregates). However, the projected earnings growth for small-caps is higher, at 18% for the next couple of years versus 8-10% for large-caps. So, growth-adjusted valuations are not that expensive for small-caps.

Fund Manager Talk | Don’t generalize smallcaps as expensive, it’s a stock-picker’s paradise: Mihir Vora

Deven Choksey, MD of DRChoksey FinServ, emphasizes careful investment with large-cap stocks in the Nifty 50 and Nifty 100 due to stable growth prospects. He advises caution with gold financiers due to potential interest rate impacts and expects robust growth in auto sales and metals, driven by several sector-specific factors.

Nifty 100 largecaps have stable growth prospects: Deven Choksey

By minimizing exposure to higher volatility securities, the Nifty 100 Low Volatility 30 Total Return Index (TRI) smoothes out portfolio movements and limits downside risk in times of market corrections.

Maximizing gains while minimizing risks: The smart beta advantage

Baroda BNP Paribas Large Cap Fund, which completes 20 years, primarily invests in large cap stocks and has delivered a 17.02% return since inception. It outperforms its benchmark, the NIFTY 100 - TRI, over both 15 and 10-year periods

This large cap fund turns Rs 10,000 monthly SIP to Rs 1.33 crore in 20 years

Despite 77% of Nifty 100 stocks trading above their 20-day DMAs and 63% above their 50-DMAs, 16 stocks, including six Adani Group stocks and several PSUs, have fallen below both moving averages. According to Ace Equities data, this indicates generally favorable trends for large-cap stocks.

6 Adani stocks, LIC, and 3 PSUs slip below 20 & 50 DMAs: What should investors do?

The NSE Indices Committee revealed its September 2024 adjustments, impacting indices like Nifty 50, Next 50, Nifty 100, and Nifty Bank. Notable changes include Trent and Bharat Electronics joining Nifty 50, while Divis Labs and LTI Mindtree exit. These modifications will cause considerable inflows and outflows for the involved companies.

NSE Indices Rejig: Key stock entries and exits in Nifty50, Nifty Next50, Nifty100 and Nifty Bank

Apna.co connects Nifty 100 companies with young talent in smaller cities, showcasing rising female participation and inclusive hiring practices.

Corporates tap apna.co for finding talent in smaller cities

New Delhi [India], August 8: 30% of Nifty 100 companies, including marquee names such as Kotak, Cholamandalam, Titan, Trent, and many more, use apna.co for their diverse hiring needs, forming a significant part of their growing base of paying customers. Apna.co has facilitated 1000+ job applications per day in the last 12 months for these companies. Of these applications, 50% were for roles in the Banking, Financial Services, and Insurance (BFSI) sectors, while other sectors gaining traction included Automotive, Retail, Consumer Durables, and Information Technology.

One Third of Nifty 100 Companies Hire Thousands of Young Talent on apna.co

NIPPON INDIA ETF Nifty 100 objective is to provide investment returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX 100 Index, subject to tracking errors