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Selecting NIFTY Index-Based ETF

TIP Guy 22 November 2009 analysis, index 6 Comments

ETF_imageI have been trying to understand the options available for the index based investments that include index based mutual funds or exchange traded funds. In principle, I am fan of exchange traded funds because (a) they follow a given index; (b) no manager involvement; and (c) low cost structure. Index based fund investments are very good vehicle if an individual wants to avoid stock selection and just wants to follow the index performance. In general, for last 10 years, the NIFTY index has returned an average of 15.5% per year. This return excludes the dividend payments.

The objective for my investment in ETF index fund is to follow the index performance. It will also act as a benchmark for my long term investments. I invest in individual stocks for long term wealth generation hoping to exceed the market performance. At a very minimum level, I would like my long term portfolio to beat the market by some percentage points. If I cannot do that, then it would make sense for me to close my long term portfolio, and invest all my money in index funds.

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Suggested Reading – August 31, 2009

TIP Guy 31 August 2009 sunday reading No Comments

Blogosphere is an interesting place where you find various bloggers expressing their viewpoints. I am listing some of the articles that I enjoyed reading.

Economy, Finance, Investing.…..

My Article in Blogosphere

These are some diverse set of articles from fellow bloggers and business magazines. I hope you enjoy reading all or some of these interesting posts.


A question to readers: We see analyst and experts analyzing markets and predicting performance. But then almost all of them go on and start recommending few stocks. Isn’t this intriguing and bizzare? If one is analyzing an index, why not recommend ETF, the cheapest of all?  What’s your thoughts?



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