India Infoline NIFTY ETF

magnet · #1 7th October 2011, 09:31 PM

Quote:

India Infoline (IIFL) has launched its NIFTY ETF which will charge annual recurring expense of just 0.25%. Expense ratios of actively-managed funds are as high as 2% p.a. Normally, an ETF’s expense ratio is typically in the range of 0.25%-0.75%.

India Infoline launches NIFTY ETF with low annual recurring expenses. Will this be a game-changer? - Moneylife Personal Finance site and magazine

vinvest · #2 7th October 2011, 10:24 PM

There are only 2 important things in an Index Fund
1) Expense Ratio.
2) Tracking Error.

If their tracking error is low, then I will surely buy it. As of now, Benchmark's Index funds are my choice, but their expense ratio is not so low

Benchmark Nifty - 0.5%.
Benchmark Nifty Junior - 1.0%.

In the US, Vanguard has wildly popular Index funds (ETFs & Regular) which have expense ratios as low as 0.10% & a non-existent tracking error. Unfortunately Vanguard has no plans to set shop in India.