Religare Nifty ETF Exchange Traded Fund NFO: Review Analysis & Details: Finance Trading Times

Religare Nifty ETF Exchange Traded Fund NFO: Review Analysis & Details

Details about Religare Nifty ETF Exchange Traded Fund: Review, Analysis, Details & Opinion.
The Religare Mutual Fund House is all set to enter the ETF space in india with the launch of their Religare Nifty ETF Exchange Traded Fund. This appears to be the first ETF by the Religare Mutual Fund house. Although in the past, there have been other mutual funds from Religare (like Religare Business Leaders Fund).

In this article, we will analyze how good is this Religare Nifty ETF Exchange Traded Fund NFO, whether this Religare Nifty ETF Exchange Traded Fund offers anything new or unique for the investors and whether the investors should invest in Religare Nifty ETF Exchange Traded Fund.

Religare Nifty ETF Exchange Traded Fund NFO: Review Analysis & Details

Let's begin with some basic details about Religare Nifty ETF Exchange Traded Fund.
What are the NFO dates for Religare Nifty ETF Exchange Traded Fund?
The NFO period for Religare Nifty ETF Exchange Traded Fund is from 23 May 2011 and will close on 06 June 2011. Religare Nifty ETF Exchange Traded Fund

What is so unique about this Religare Nifty ETF Exchange Traded Fund?
In my honest opinion, there is nothing much unique about this Nifty based ETF from Religare, as compared to other Nifty based ETF's already available. This is just another Exchange Traded fund which will invest the money collected from investors into the stocks which constitute the Nifty index in the same proportion of the index constituents.

The asset allocation will be as follows:
95% to 100% will be in Indian equities in proportion of the index constituents
Rest 0-5% will be in debt and money market instruments for unit redemption and creation purposes.

What are the other competitor products available in comparison to Religare Nifty ETF Exchange Traded Fund?
There are lots of other ETF's available in the market which are similar to this Religare Nifty ETF Exchange Traded Fund.
There are many other Nifty based ETF (like ETF- Exchange traded fund -Benchmark Funds; Motilal Oswal MOSt Shares M50 ETF) and quite a lot of Nifty based index Funds (like Quantum Index Fund (QIF ETF) & Reliance Index Fund-Nifty Plan).

The Religare Nifty ETF Exchange Traded Fund will track the benchmark S&P Nifty 50 index for tracking its performance.

What are the risks of investing and trading Religare Nifty ETF Exchange Traded Fund?
Being an ETF, it comes with the advantage of real time trading and price fluctuations which can be beneficial for traders as well as investors. On the risk side, it is the same story as with an other ETF - the investors take the risk of overall market falldown and hence the value of the ETF units going down.

Final Thoughts about Religare Nifty ETF Exchange Traded Fund?
Just another ETF based on Nifty.
When it comes to ETF's, I dont advise investors to go through the NFO route, rather buy them directly on the exchanges once the NFO period is over and regular trading starts. Although withe zero entry load and zero exit load, investing through this NFO will be beneficial so as to save on brokerage charges during the buying leg, but the investor need to check this with the fund house.
However, if you apply through NFO, then you will have to apply with the minimum application amount.

See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit plus the premium, during NFO period
Minimum investment Rs 10,000 and in multiples of Re 1 afterwards.

No tax benefit will be available in Religare Nifty ETF Exchange Traded Fund

Mr. Pranav Gokhale will be the fund manager for Religare Nifty ETF Exchange Traded Fund.
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