Re: Mutual funds to avoid
If you do not have any 80cc objectives in mind, want to passively follow any index, do not want to pay fees to AMC's etc. you can start your own SIP with any of the etf's. Changing composition of indices etc dont effect you.
You need not draw conclusions from a one day experience. It is true that trading is thin - so divergences may occur. You can always use it to your advantage - by buying or selling from your holdings.
regards
m
I've been thinking along the same lines but ...
There does not appear to be that much trading / volumes in NIFTYBEES (and many other ETFs).
Also, one must be clear that one is buying at a price that may not always be in synch with the Nifty 50.
One day, I looked at the NIFTYBEES versus the Nifty 50 (on NSE's site) and, though there was a correlation, at one point there was a clear divergence. This emphasises that the traded price at any time does not necessarily follow the index.
I'm not sure if I've expressed myself clearly
There does not appear to be that much trading / volumes in NIFTYBEES (and many other ETFs).
Also, one must be clear that one is buying at a price that may not always be in synch with the Nifty 50.
One day, I looked at the NIFTYBEES versus the Nifty 50 (on NSE's site) and, though there was a correlation, at one point there was a clear divergence. This emphasises that the traded price at any time does not necessarily follow the index.
I'm not sure if I've expressed myself clearly
If you do not have any 80cc objectives in mind, want to passively follow any index, do not want to pay fees to AMC's etc. you can start your own SIP with any of the etf's. Changing composition of indices etc dont effect you.
You need not draw conclusions from a one day experience. It is true that trading is thin - so divergences may occur. You can always use it to your advantage - by buying or selling from your holdings.
regards
m