Best ETF Funds

Exchange Traded Funds(ETFs)

Scheme Name	AUM(Rs.in Cr)	Nav(₹)	1W %	3m %	6m %	1Y %	3Y %	Since Incp.
CPSE ETF	36,231.32	83.11	[0.92]	18.49	53.95	103.49	56.38	16.77
Motilal Oswal S&P BSE Enhanced Value ETF	53.58	94.69	[0.70]	13.88	48.04	90.71	0	66.72
ICICI Pru Nifty PSU Bank ETF	44.36	69.58	[3.69]	16.51	37.82	77.56	0	80.37
Kotak Nifty PSU Bank ETF	1,427.63	688.63	[3.70]	16.48	37.52	77.17	53.37	6.2
Nippon India ETF Nifty PSU Bank BeES	2,653.66	76.80	[3.69]	16.48	37.53	77.07	53.4	6.7
Kotak Nifty Alpha 50 ETF	103.09	45.88	[2.72]	4.81	29.56	76.24	0	15.07
Bharat 22 ETF	16,829.35	102.14	[1.71]	8.41	34.51	69.3	44.14	16.88
ICICI Pru Nifty Auto ETF	53.22	21.93	[1.11]	15.58	29.97	67.05	0	32.1
Nippon India Nifty Auto ETF	135.92	219.31	[1.11]	15.58	29.94	66.99	0	34.7
HDFC NIFTY Smallcap 250 ETF	244.08	152.01	[1.05]	4.22	21.31	66.62	0	54.29

Exchange Traded Funds(ETFs)

What is an ETF?

ETFs are essentially index funds that are listed on an exchange and track the price performance of the target index closely. The ETF trading value is based on the net asset value (NAV) of the underlying stocks in the target index. E.g., a Nifty ETF will look to replicate CNX Nifty returns.

ETFs are popular world over with nearly 60% of trading volumes on the American Stock Exchange (AMEX) captured by all types of ETFs. At the end of June 2011, the global ETF industry comprised 2,825 ETFs from 146 providers on 49 exchanges around the world with total assets of US$1.49 trillion (Source: www.ifaonline.co.uk).

The ETF advantage

Trade like stocks - You can buy and sell an ETF during market hours on a real time basis as well as put advance orders on purchase such as limits or stops. In case of conventional mutual funds, purchase or sale can be done only once a day after the fund NAV is calculated.
Low cost of investment- The passive investment style with low turnover helps keep costs low. ETFs are known to have among the lowest expense ratios compared to others schemes.
Diversification benefit- In case of Nifty ETF, you own the complete basket of 50 stocks and remain diversified.
Simple and transparent- The underlying securities are known and quantities are pre-defined (In case of conventional mutual fund schemes, one needs to wait for the monthly factsheet). No form filling is required if you transact in the secondary market. Investment can be made directly from the fund house or the exchange.
Supports small ticket investments - ETFs are a great tool for investors wanting to start with a small corpus. The minimum ticket size is 1 unit (in case of IIFL Nifty ETF, 1 unit is approximately 1/10th of Nifty level, i.e Rs500, when Nifty is at 5000). Premium and discount also tends to be higher in the futures segment, than in ETFs.
ETFs are taxed like stocks- Investors can take advantage of special rates for short term and long-term capital gains.

Target audience

Long term investors
First time investors
Investors looking for a low cost diversified portfolio
Traders who do not have enough capital to invest in index futures
Institutional investors looking to temporarily park cash during portfolio transition
Arbitrageurs to carry out operations with low impact cost

Concept of tracking error

The extent to which the NAV of the scheme moves in a manner inconsistent with the movements of the underlying Index on any given day or over any given period of time due to any cause or reason whatsoever including but not limited to expenditure incurred by the scheme, dividend payouts if any, all cash not invested at all times as it may keep a portion of funds in cash to meet redemption, purchase price different from the closing price of securities on the day of rebalance of Index, etc.

Points to note before investing in ETFs

Invest in ETFs with ample secondary market liquidity- Fund houses do depend on market makers and arbitrageurs to maintain liquidity to keep the price in line with the actual NAV.
ETFs track the target index– Any investor wanting an exposure to a particular target index like Nifty will do well by investing in ETFs. The objective of ETF is to be the index rather than beat the Index.
Always invest in key benchmarks ETFs rather than sectoral funds- Investing in sectoral ETFs is prone to higher volatility compared to key benchmark ETFs like Nifty.
Cost of trading on the exchange- Investor will have to bear the cost of brokerage and other applicable statutory levies e.g, Securities Transaction Tax, etc, when the units are bought or sold on the stock exchange.

ATTENTION INVESTORS

Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

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Risk Disclosure on Derivatives

9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
On an average, loss makers registered net trading loss close to Rs. 50,000.
Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

We are ISO 27001:2013 Certified.

This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.

ATTENTION INVESTORS

Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

Risk Disclosure on Derivatives

9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
On an average, loss makers registered net trading loss close to Rs. 50,000.
Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

We are ISO 27001:2013 Certified.

This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.

Best ETF Funds

Exchange Traded Funds(ETFs)

What is an ETF?

The ETF advantage

Target audience

Concept of tracking error

Points to note before investing in ETFs

ATTENTION INVESTORS

Risk Disclosure on Derivatives

We are ISO 27001:2013 Certified.

MARKET

IDEAS

MUTUAL FUNDS

TRADING DOCUMENTATION

CALCULATOR

GLOSSARY (A-Z)

ATTENTION INVESTORS

Risk Disclosure on Derivatives

We are ISO 27001:2013 Certified.