 "Tipping Point: Exchange-traded fund based on the S&P BSE 500 index")
What is special about an exchange-traded fund based on the S&P BSE 500 index?
ICICI Prudential Mutual Fund has launched an exchange-traded fund (ETF) based on the S&P BSE 500 index on Wednesday. The interesting point about this is that it allows to simplify your equity investments to the extreme. Invest in it and you get exposure to a substantial portion of the market. It is a good product for beginners. It’s advisable for them to invest in a passive fund first, and get accustomed to the volatility of equities, before graduating to an active fund.
Should you invest in it?
Not so fast. Ensure that the expense ratio is low. You also need to check its tracking error, or how closely the fund is able to track the index. For that, give it some time to develop a track record. Also ensure that there are sufficient trading volumes in this ETF.
ICICI Prudential Mutual Fund has launched an exchange-traded fund (ETF) based on the S&P BSE 500 index on Wednesday. The interesting point about this is that it allows to simplify your equity investments to the extreme. Invest in it and you get exposure to a substantial portion of the market. It is a good product for beginners. It’s advisable for them to invest in a passive fund first, and get accustomed to the volatility of equities, before graduating to an active fund.
Should you invest in it?
Not so fast. Ensure that the expense ratio is low. You also need to check its tracking error, or how closely the fund is able to track the index. For that, give it some time to develop a track record. Also ensure that there are sufficient trading volumes in this ETF.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%