Adding to the list of existing Nifty based ETF's, the
India Infoline Asset Management Company Ltd (IIFL AMC) has come out with its own Nifty based ETF called the IIFL Nifty ETF
The IIFL Mutual Fund House is launching their IIFL Nifty ETF. In this article, we will analyze how good is this IIFL Nifty ETF NFO, whether this IIFL Nifty ETF offers anything new or unique for the investors and whether the investors should invest in
IIFL Nifty ETF.
IIFL Nifty ETF NFO: Review Analysis & DetailsLet's begin with some basic details about IIFL Nifty ETF.
What are the NFO dates for IIFL Nifty ETF? The NFO period for IIFL Nifty ETF is from 28 September and will close on 12 October 2011. After the NFO period, the regular buying and redemption of fund units will start, but the precise date is not known.
What is so unique about this IIFL Nifty ETF? All funds- whether they are ETF or Mutual Funds have a cost attached to it - it can be in the form of fund management charges, fund adminsitration charges and so on. What appears to be unique about this IIFL Nifty ETF is that it claims to be the lowest on cost structure for fund management. As per the details available, this IIFL Nifty ETF will have only 0.25% fees and expenses for fund management charges - claimed to be the lowest in the MF industry. Other than that this is another Nifty based Exchange Traded Fund or ETF with the usual ETF benefits of low cost, precise tracking of the underlying index with minimal tracking error, benefit of intra day price movements to take advantage of trading on an index with the flexibility of stock trading and so on. See all advantages here Advantages of Nifty based ETF
What are the other competitor products available in comparison to IIFL Nifty ETF? Apart from that, there are many other Nifty or Sensex based ETF's or Index funds which are available for investments as well as intraday trading for betting your money on the movements of Nifty and Sensex: 1. Religare Nifty ETF Exchange Traded Fund
2. Sahara Sensex ETF
3. Quantum Index Fund (Nifty) ETF
4. Nifty Benchmark ETF
5. Birla SunLife Nifty ETF
6. Motilal Oswal MOSt Shares M50 ETF and many more
What are the risks of investing and trading IIFL Nifty ETF? The benchmark for IIFL Nifty ETF Fund is the S&P Nifty 50 Index. By investing in such a fund, you are taking the risk on overall Indian Markets, as included the 50 shares of Nifty 50. If the Nifty fluctuates, so will the returns generated from this fund will keep fluctuating in either direction. But overall, the index based index funds and ETF's are learnt to have outperformed the rest of the mutual funds in better probability.
Final Thoughts about IIFL Nifty ETF? Another Nifty based ETF adding to the list of Nifty (and Sensex) based index funds and ETFs already available in the Indian markets. You can look for investing in this if you believe the Nifty index will generate better returns and this ETF will closely match the performance of Nifty, with minimal tracking error.
See List of All Mutual Fund and NFO Articles here
During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.
No tax benefit will be available in IIFL Nifty ETF
Mr. Manish Bandi will be the fund manager for IIFL Nifty ETF