appTracking Nifty Next 50 Index
Expense RatioETFs charge their shareholders an expense ratio to cover the fund’s operating expenses, which is expressed as a percentage of the fund’s average net assets. This directly reduces the fund’s returns to its shareholders, and, therefore, the value of the investment. Lower is always better!
Hefty expense ratio implies reduced returns over the long term
Tracking ErrorTracking error is the difference between the performance of the ETF and that of the underlying benchmark it's tracking. It's an important metric for investors who want to replicate an index's performance by investing in the ETF. The lower the tracking error, the better is the ETF's performance aligned with the investor's expectations
ETF has not been able to closely match its benchmark returns
Return vs FD RatesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If the ETFs price return is lower than this rate, investors are better off investing the amount in a FD
ETF has been generating better price return than bank FD
Entry PointHigh demand for an ETF increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the ETF
Good time to consider, as ETF is not in overbought zone
News & Opinions
Short Take: Changes in Index Constituents
3 months ago•The Hindu Businessline
Zydus Lifesciences gains on US FDA nod for anti-depressant drug
3 months ago•Moneycontrol
Stocks that will see action today (August 18)
3 months ago•The Hindu Businessline
NSE reshuffles constituents in multiple indices, including Nifty Next 50 and Nifty 500, effective September 29
3 months ago•The Hindu Businessline
Jindal Steel gains 2% on hopes of $30-million inflow after Nifty Next 50 entry
4 months ago•Moneycontrol
Proposal to remove non-F&O stock from Nifty Next 50 index put on hold
5 months ago•Business Standard
7 largecap stocks surge to new heights as several companies break 5-year highs
5 months ago•Economic Times
NAVThe net asset value (NAV) of an ETF is based on the current prices of the stocks/assets in the fund and an actual accounting of the total cash in the fund at the time of calculation. Market price can be different from real time NAV due to late market activity and both tend to converge periodically. A market price close to real time NAV is much better for investment!
Current price is far from the real time NAV