What are the options out there without getting through any 3rd party. If I can avoid going through etf, which could have liquidity issue, plus who knows if that company will exists after say after 10-20 years or in what health…
Well, the Nifty consists of the most traded and liquid scrips in the market. You can say that most of these stocks are blue chips and the best way to capture an index is an ETF or an Index fund. If the constituents of the index change then the ETF/Index fund will automatically be rebalanced so you don’t have to do anything.
ETFs aren’t liquid in India currently but judging by the way they are growing in popularity it won’t be an issues say 5 years down the line let alone 10.
Thanks, If I search for index fund, I see ETFs. What are few good ETFs and Index fund in India
I have query regarding etf.
What if the etf i brought has no buyers after few years. Will i be able to get back the money i invested in some other way?
Investing in Nifty 50 for 10 years !!! , its really depends upon ones “Purpose”, if you have enough money for your yearly expenses . Investing in index ETF s are one of the best option , instead of investing in all the 50 stocks, because of 2 reasons
1 Individual stocks may not perform ( may not go up or may not come back from low) where as index performs
2 Stocks in the present index may not be part of index in future ( example Suzlon, once part of the index , was darling of the market )
Market daily turnover was 25000 crore long back now exceeded 3lakh crore , so in future liquidity may ot be a problem and also ETFs like NIFTYBEES gives dividend
But… can you give one example of ETF and one Index fund… seems like I am confused find them…