When I check historical performance of index funds I find some with fairly low volatility which seem to blend govt bonds (like PSU bank bonds). Those have shown great resilience during times of distress. Is it better to manage those two asset classes individually and separately ? Are hey equivalent of hybrid funds ?
Are the MF comparison sites “honest” ? I find sites excluding certain funds, assigning no ranking to funds that are 10+yrs old, assigning volatility-ranking and downside-protection ranking that seem to be a bit conflicting with other sites. Aren’t such rankings expected to be objective and consistent ?
When trying to understand whether I should consider S&P BSE Sensex or Nifty 50 index funds, I found articles that seem to distill comparative wisdom as such:
- Go for higher AUM to protect against redemption pressure
- Go for lower expense ratio
- Go for fund that has lease tracking-error (i.e. returns as close as possible to index). Tracking error <= 1% is ok.
- S&P BSE Sensex has 30 large-cap funds, Nifty 50 index has 50 large-cap funds (& higher trading volume, & higher sectoral diversity)
Any views ?