Low Cost Diversification with Angel One Nifty Total Market Index Fund

Exchange-Traded Funds (ETFs) have become a popular investment tool for those looking to gain exposure to India’s stock market at a low cost. By tracking a broad index that represents the country’s diverse economic sectors, ETFs allow investors to access a wide array of stocks without having to pick individual companies. This offers a convenient way to diversify risk and potentially capitalize on India’s growth story without incurring the high fees typically associated with actively managed funds.

Angel One Nifty Total Market Index Fund

Talking about diversification, Angel One MF has recently launched an NFO, Angel One Nifty Total Market Index Fund, which invests in a mix of equity and money market instrument

• Equity and equity-related securities constitute the Underlying Index.
• Equity Derivatives
• Money Market Instruments
• Reverse Repo and/or Tri-Party Repo on Government Securities and/or Treasury bills.
• Cash & cash equivalents
• Units of money market / liquid mutual fund schemes, subject to requisite regulatory guidelines.
• Any other securities/instruments as may be permitted by SEBI from time to time, subject to requisite regulatory approvals, if any

Cost-effectiveness of ETFs compared to Active Funds

• Lower Management Fees: ETFs have passive management, meaning they simply track an index, resulting in lower fees compared to actively managed funds that require extensive research and active stock picking.
• Lower Expense Ratios: ETFs typically have much lower expense ratios than active funds, which directly translates to reduced costs for investors.
• No Active Management Costs: Active funds require a team of managers and analysts, whose salaries and research costs contribute to higher fees. ETFs, on the other hand, have minimal management expenses.
• No Performance Fees: Active funds sometimes charge performance-based fees if they outperform a benchmark, which can significantly increase overall costs. ETFs do not have such fees.

Ensure steady returns with systematic withdrawals! Estimate your withdrawals with our SWP Calculator and manage your finances seamlessly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.