Is doing a SIP of one Nifty ETF (costing about 100 INR like kotak nifty etf) every day good for long-term wealth creation?
SIP is fixed amount every month.
Incase of nifty etf 1 unit would be 1100rs, when market goes up it would be 1200rs - meaning it’s not a fixed amount.
You could consider SIP in index funds like UTI nifty index fund - direct-growth, where monthly 1000rs could be invested.
i recommend juniorbees etf
For the forseeable future better to stick with index funds. The problem with these ETFs is most them are illqiuid and that means impact cost. Also, with ETFs, you’ll have to manually invest each month whereas, with Index funds, this can be automated.
Right! in systematic investment plan amount remains always fixed it doesn’t matter how the market is performing, only no of units will increase or decrease according to it. But you have to pay equal amount every month, so it is not possible to do a SIP of one Nifty ETF.
Who told you all ETFs are illiquid? juniorbees, niftybees, bankbees etc have decent volumes & are very good instrument for investments…with a good strategy its anytime better than putting in MF.