I’d like to see more of low cost sectoral index funds, or theme based funds. Currently, we do have some sectoral ETFs but liquidity is a challenge outside of banking and IT indices.
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But still doesnt make sense. There are multiple index funds with low expense ratio. Investment should never be dependent on a particular AMC
Die hard fan spotted.
That should make sense now.
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OK… There is room for innovation both disruptive as well as incremental in passive MF market.
e.g.
Incremental : Lauch Passive ELSS
Disruptive: Launch Multi asset passive fund with fixed ratio across assets. With auto quarterly or yearly re-balancing. (Currently NPS has yearly auto re-balancing and fixed ratio but stock selection is not passive. Most of Multi-asset funds depends to intelligence of fund manager to dynamically change ratio), so market needs such product.
It has been discussed on and off in this forum.
Target customers for both categories need not be loyal fans. Just that this space is currently open. Any AMC can come in with suitable product to grab the market share.
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I never mentioned anything about innovations. I said no correlation between AMC and Investing
Will take some more time, we’re still waiting for the final approvals.
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Hey Bhuvan, do you also have plans to launch Index ETFs, once you start your AMC operations ?
Also whats the update about the same ?
Looks like this is an in principle approval which Zerodha got as well. Final approval takes time is what I heard from Zerodha staff here.
Zerodha likely already have in-principle approval.
An in-principle approval is only a partial approval that allows the firm to start the process of setting up an AMC. The launch of products can only happen after SEBI gives its final approval.
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