Page 3 - Index Funds

Sectoral funds see highest inflows in September: What should investors do?

The only categories which saw net outflows were ELSS (Rs 141.15 crore) and Largecap (Rs 110.6 crore). This was the fifth consecutive month where the large cap witnessed net outflows.

58% large cap index funds fail to beat underlying indices in first half

Large index funds continued to underperform in the first half of 2023 with 58 per cent large cap funds failing to beat their underlying indices and the overall underperformance being as high as 85.2 per cent. According to S&P Dow Jones Indices -- a leading index provider globally -- the underperformance rates for the domestic equity and bond mutual funds have been elevated over the past three- and five-year periods. Based on the varying performance of active managers across different fund categories, most equity large-cap funds failed to beat their benchmarks, with 58 per cent of actively managed funds underperformed on the S&P BSE 100 in the first half of 2023. In the fixed income fund category, while the BSE India government bond index rose 4.7 per cent in the first six months, fewer than one-sixth of active bond fund managers beat the benchmark during the period, with an underperformance rate of 85.2 per cent. But fewer funds performed badly as tenure, with underperformance

The problem with index funds

The dominance of index funds could be stifling price competition, compounded by the concentration of power among a few giants in fund-management and private-equity

Overnight index swap rates at 10-month high; government bond yields rise

One-year swap rate has jumped 13 bps so far in September, whereas the five-year swap rate has jumped 19 bps

Index fund or ETFs? Compare total cost

The difference between market price and the NAV imposes an additional cost. Besides, there is brokerage fee, which amplifies an ETF's tracking error

What are Index funds? Why have they become popular? How to pick right one

Low cost, simplicity and market returns were cited as reasons for choosing index funds.

Index funds are the flavour of the season, followed by ETFs: survey

The survey revealed that passive funds have taken centre-stage in India over the last few years, gaining a market share from 1.4% of AUM in 2015 to over 17% in 2023.

Investors can eliminate price-NAV mismatch by opting for index funds

Long-term investors can optimise costs by purchasing ETFs through low-cost brokers

Large-cap MFs, Index Funds to attract flows as markets pick pace: Analysts

Gross inflows into active equity mutual fund (MF) schemes dipped 34 per cent month-on-month (MoM) to Rs 25,400 crore in April

Wealth creation is simple but not easy, requires discipline

Clients often fall back into old habits and require motivation to stay on track. Financial planning professionals also provide support during in inevitable setbacks

Equity funds log inflow of Rs 12,500 cr in Jan, small-caps top share

Inflows from SIPs have continued to counterbalance the outflows from foreign institutional investors

Three-fold growth in index fund AUM in 2022, ETF assets cross Rs 5 trn

Index fund growth led by debt schemes, with fund houses launching target maturity funds this year

NSE floats consultation on index components ahead of HDFC-HDFC bank merger

Currently, the entity getting merged is removed from the index and later the weightage of the merged entity is increased

Pidilite may enter Nifty 50 once HDFC gets taken off after merger

The adhesive maker's inclusion to be ad hoc; analysts divided over treatment around HDFC's removal

Time-starved investors must stick to index funds

While Amit had stayed invested for a long time, avoided leverage, and shunned investment-cum-insurance policies, unplanned investments and mindless diversification had produced a disappointing outcome

Index funds are here to stay

As the asset management industry grows in heft, and within it the index funds gain traction, it is this ability to engage that will influence how corporate India functions

A quality strategy can reduce risk in the mid-cap universe of 150 stocks

Enter gradually, raise exposure once funds have developed track record

Cautious investors may shift to an index fund in mid-, small-cap categories

When selecting an index fund, pay attention to fee and tracking error

Investors prefer target maturity index funds to fixed maturity plans

Lower interest rate risk and predictable returns key attractions

Crackdown aftermath: Hang Seng index enters bear market

That extended its weekly loss to 5.8 per cent, the worst showing since March 2020