Simplify your investment strategy by parking in a broad market index

But keep an eye on the tracking error of funds based on S&P BSE 500 and Nifty 500

ICICI Prudential Mutual Fund recently launched the fund-of-fund (FoF) for its S&P BSE 500 Exchange Traded Fund (ETF). Another fund based on a broad market index that is already available is Motilal Oswal Nifty 500 Fund, an index fund. Such products allow investors to get exposure to the bulk of the market through a single fund.

An FoF makes an index-based product available to more customers. “We launched the FoF with the underlying index as S&P BSE 500 ETF to make the product available to even those investors who don’t have a demat account,” says Chintan Haria, head-product development and