Tracking Error News Today

The attractiveness of passive funds like ETFs hinges on two critical metrics: the expense ratio and tracking error. A low expense ratio means lower costs for investors, enhancing the funds appeal by improving net returns. Similarly, a minimal tracking error ensures the ETF closely follows its benchmark index, crucial for matching market performance.

"The appointment of a single fund manager for domestic and overseas/commodity funds is intended to reduce the cost of managing the fund," Anand Rathi Wealth Ltd Deputy CEO Feroze Azeez said.

He talks to BT Money Today about the risks to individual investors and more

We considered the passive small cap schemes that are benchmarked against Nifty Smallcap 50 - TRI, and Nifty Smallcap 250 - TRI. These benchmarks offered 65.47% and 49.09% respectively. These small cap index schemes offered around 46-62% in 2023. The underperformance, as said earlier, was around 1.79-3.46%. (See table) We considered the regular and growth options.

The scheme will allocate 95-100% in equity and equity related securities of companies constituting the underlying index (Nifty50 Value 20 Index) and 0-5% in money market instruments including TREPs and units of debt schemes.

Edelweiss Mutual Fund announced the launch of the Edelweiss Gold ETF. The scheme opened for public subscription on November 02, 2023, and will close on November 06, 2023.

The performance of the scheme will be benchmarked against S&P BSE Sensex TRI (Total Return Index). The scheme will be managed by Ekta Gala and Vishal Singh.

Passive funds follow a rule-based approach to investing with no active stock selection. They follow an index (like Nifty 50 or Nifty 500) and try to replicate its performance by buying all stocks with the same weight as in the index.

Investment Week and Sustainable-Investment.com are pleased to announce the finalists for the Sustainable Investment Awards 2023.

UTI Nifty500 Value 50 Index fund aims to provide returns in line with that offered by the underlying index – Nifty 500 Value 50 index. The NFO will close on May 8, 2023