Hey Sandeep, a product for the microcap segment is not part of our immediate plans. In terms difficulties, the segment is still an evolving and therefore the risk much higher. In terms of replication, liquidity can be an issue during volatile times and as the index churn is much higher, can lead to higher tracking error.
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Hi @VishalJain , why not call the zerodha nifty 100 etf as NIFTYCASE or NIFTY100CASE instead of TOP100CASE. It would have been easy to remember and market like niftybees.
Hi, we did consider the option that you have mentioned, but keeping in mind we will have other ETFs in the future, to ensure differentiation and at the same time be reflective of the segment, we chose TOP100CASE.
Hi @VishalJain ,
Can You consider Inav page Like Nippon providing
https://mf.nipponindiaim.com/FundsAndPerformance/Pages/INAV.aspx
Current Zerodha Fund House Inav page not updating automatically. We have to refresh tab frequently …
@VishalJain any reason for picking 10 as starting NAV?
Seems a poor choice for equity ETFs. 0.1% will become the minimum nav change then. Picking 100 would have allowed NAV to be more granular no?
Two Issue I have noticed.
- Many of the etf’s , I think the iNav via exchange is is not updating realtime (I am guessing this , because iNav in the AMC website is different ) . This is the reason I requested for better Inav page from Zerodha fund house.
- I think top100case iNav is not getting updated as per the Nifty 100 tri or some difference there . If any one can share the Nifty 100 tri chart and top100case inav chart (I am not yet skilled to do that, I am sorry ) . There is spike in the price in morning time . Liquidity is there , iNav and price is different (majority of the time , price is higher than iNav).
Hey Sandeep, yes what you are saying is correct. However, our objective as a fund house is to increase adoption and we have seen that lower tickets sizes leads to higher adoption in a quicker time and higher adoption would finally lead to lower friction costs for everyone.
,@VishalJain - Why is the Expense Ratio high for ETF than MF. I thought its supposed to be the other way around.
Hey, do let me know what you are specifically referring to. Thanks
Nifty 100 MF is available for 0.1% I use Bhandan. But TOP100CASE is 0.25%
@VishalJain. I do understand thats an Index replicating nifty 100. TOP100CASE is not. why over engineering the existing time tested index?
Top100 case also replicates the index. That’s what an ETF is.
These are business decisions. They want charge higher so they do. Similarly, Edelweiss Nifty LM250 also has a lower expense ratio than Zerodha LM250 Index fund
not all ETFs are index based. TOP100CASE is an ETF but not index based.
Every ETF in india is index based. Active ETFs are not allowed in India.
TOP100CASE tracks Nifty 100 TRI
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Hey Ranton, TOP100CASE is Index replicating and replicates the Nifty 100 Index. As i have mentioned earlier as well on this platform, our decision on expense ratios depends on many factors such as the market/client segment which we operate in, business dynamics & sustainability of the business, etc. For eg we are primarily a retail focused fund house and therefore the cost dynamics that we operate in are significantly different from many of the others. We have priced all our products as competitively as we could and wherever possible such as the Zerodha Liquid ETF and Zerodha Gold ETF, we are among the lowest. In others, as we scale, we will keep passing on the benefits of economies of scale to investors. Our strong belief is that simple products will help scale quickly and see the next 10 million Indians access the capital markets and benefit from the India growth story, this is what we are striving for as an AMC. Hope this helps!
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Ok thanks for the 10M answer, anyway I have been working in corporate to know how to read between the lines. May be I will move to Zerodha MF when you actually bring down the TER. I dont see a benefit right now with very low liquidity its just a waste of commission for no reason