These ET videos and the presenter may not be that popular as some other fin experts here... but the reason is that he sounds so sober and not so pop. The content and research points provided are rock solid nd completely enlighting !!! Highly appreciated ! 👌
An amazing video ! In my opinion the market cap index fund is better for long term ... take a look at the expense ratios difference.. you will find that by investing in a low expense ratio fund you’ll save almost 10 years worth of money ... always take care of expense ratio guys
Very good analysis but I have a totally different view to it. What equal weighting does is it reduces weightage of biggies and increases those sectors where mcap is less. The performace of Equal Weighted index in last 1yr is better as Metals and Pharma are performing better than others like Finance, IT, Oil etc. So my suggestion is that if you expect the sectors having higher mcap to perform, invest in mcap weighted fund. If you expect a churn in sectors and smaller ones to gain, invest in Equal Weighted fund.
If anybody knows which sectors will perform better one would just but sectoral funds or direct stocks.... why bother with index funds? One buys index funds only if you agree that predictions are a waste of time...just buy the entire market and be done with it..
@@pran10000 Correct. Effectively Equal Weighted Index is not the whole market. It's the market with a tweak which performs better under certain conditions which I stated.
@@run.rahul.runitall Agreed. But it also performs worse than the market under other conditions. One has to pick their poison. Ultimately ones benchmark is always going to be Nifty, so it makes sense to stick with it. Especially given the lower expense ratio.
I’ve never understood the appeal of an equal-weighted index fund. The beauty of a cap-weighted fund is the winners rise to the top and the losers sink to the bottom without the fund holder having to do anything. Why would you want equal parts, say, Amazon and Auto Zone?
Very useful information. There is an error in slide at 05:40 where the name of the same index funds are shown in both the tables. Please point out the correction in the video description or in the video itself.
In depth analysis. Focused based on good research. Moreover the attempt was to give fair information instead of leading to a particular conclusion. Looking forward for more on this topic.
You should have looked out for the maximum drawdown too which would have given a complete picture. Equal 50 will tend to have a higher drawdown durin bear market and will perform well in bull markets. Market weighted to funds on other hand will offer a balanced approach.
One should always strive to learn new things, more about same things and in details about new & same things. And its so much enjoying and fulfilling when its related to investments & returns. This what ET money delivers!!
Sir certainly your are a class apart. This is a new thing which I have learnt today. Sir I request you to kindly make videos on Intetnational Investing options, especially Fang+ by Mirae. Thanks for wonderful.content.
There is a very very small insignificant difference between S&P500 Index and S&P500 Equal Weight Index. A recent update as of 30-Sep-2022 measures the 10 year Total Return (dividends re-invested) of S&P500 @ 11.70% and S&P500 Equal Weight @ 11.47% Thats a tiny tiny difference. Readers may check out US ETF "RSP". Unfortunately Indian indices are very narrow with only 50 scrips.
How ab 15 or 20 yrs? Does that factor in fees? If so, sp500 mkt weighted wins by even more. I will have to compare and also add in a 50/50 model as another option.
I’ve never understood the appeal of an equal-weighted index fund. The beauty of a cap-weighted fund is the winners rise to the top and the losers sink to the bottom without the fund holder having to do anything. Why would you want equal parts, say, Amazon and Auto Zone?
How far back do we go for the inception of an equal weighted sp500 index fund or etf? Is a 50/50 model a smoother ride and maybe better for shorter time horizons? Many questions now but thx.
@@pran10000 Hello Brother ☺, I'm in my early 20s and planning to be an aggressive equity and an ultra long term investor, basically having a higher risk tolerance and have enough patience to get high returns in a long period. I'm gonna start my investment on APRIL 2024(next financial year). I don't have any specific goal oriented investment, better to say, that I'm investing for generational wealth creation or at least for my post retirement stage. 1. EDELWEISS Nifty 50 index fund (for Mega cap exposure) ~ 10% Allocation (0.05% ER) 2. EDELWEISS Nifty Next 50 index fund (for Large cap exposure) ~ 10% (0.09% ER) 3. EDELWEISS Nifty midcap 150 momentum 50 index fund (for Mid cap exposure - only smart beta fund in my portfolio) ~ 30% (0.14% ER) 4. Nippon Indian small cap fund (for Small cap exposure - only active fund in my portfolio) ~ 40% (0.67% ER) 5. ICICI prudential Nasdaq 100 index fund (for global exposure - only international fund in my portfolio) ~ 10% (0.50% ER) These are my 5 Definite Index/active mutual Funds which I will start, once I opt to invest. So literally investing in all the companies listed in the NSE from 1 to 500, where instead of investing in direct Nifty 500, I have diversified my entire portfolio based upon market capitalisation. Investing method will be completely in step up SIP and will also actively increase or decrease the SIP regarding the market fluctuations - investing more when the market dips and less when it's at an all time high. By saying this I have already covered my health insurance and term insurance and also have a good chunk of emergency fund. And also I'm not interested in any other asset classes such as Savings Account, FD, RD, PPF, NPS, REITS, Debt Funds, bonds, stocks, ETF's, Cryptocurrency, Real Estates, etc currently. Maybe in my late 20s, i.e.after marriage I will slowly start to include some of the other options. So as of now, apart from index funds I may have one more asset class - Gold via SGB (not sure even i will try this) As I'm at the initial stage of investing, I don't want to try hands on with direct equity/stocks. As it required huge research and continuous monitoring. I love to be a passive investor, that's why I have even choose Index Funds over Active Mutual Funds. Sorry for the long para, but I need some prerequisite context to convey my thought process towards my Investment Portfolio, so that you can get a glimpse of my investing style to guide me. So my query is, is it really good to have only these 5 Funds in my portfolio regarding equity Funds, as inclusion of any more fund will result in overlapping. Is my investing style of only depending on Index is a good strategy, at least in my early stage of building wealth and considering my long run in investing? And i will be pretty happy if my portfolio has a CAGR anything above 12% in the long run. Can you share your valuable thoughts over my vision and correct me if I'm wrong? Thanks in advance♥
@@sahejg3635 ya right but I don't think ELSS funds go beyond nifty 100 companies, it'll be good to have a nifty100 ELSS fund without huge expense ratios..
Thanks for sharing this valuable analysis but it seems equal weighted approach is not that beneficial because even though returns are better in some cases on particular years but have expense ratio higher than Index weighted fund.
Over 30 years Nifty 50 index fund will be atleast 1.5 to 2 percent over nifty equal weightage index fund...if the horizon is longer one need not to choose diff mutual funds and read lot of financial books...just invest in nifty 50 index fund for 30 years and see the magic tat it completely outperform all the mutual funds existed in india
One Query :- Suppose I began buying Nifty 50 Index MF shares in 2022. One of the companies will drop out of the Nifty 50 Index later in 2024 as a result of poor performance. What will happen to the units I accumulated in my MF during the past two years ? please response
We don't get dividend in case of direct growth. Instead of dividends you get increase in share price for same stock I.e for the dividends same stock is purchased again which means 10 Rs is dividend means same share is purchased for 10 Rs . That is why there is difference in price of direct growth stock and direct dividend reinvest .
I apply in the NFO of DSP Equal Nifty fund for Rs. 15000/- whose value is now near about Rs. 19000/-. Is it worthy to hold for some more years. Please advice.
Great video, keep up the good work. I'm intrigued to know that if Equal weight Index has given 2% to all companies in Nifty50 then shouldn't sector-wise classification also come in factor of 2 rather than uneven decimal as shown at 3:00 in video !! 🧐
if you are investing for long term then I think Market cap is good option and that to if linked with lumpsump investment whenever market is in correction mode. Coz if you are relying on SIP then there are chance when you buy in high and for large cap during high there market do not fluctuate for months like reliance.. So whenever there is a dip of 1.5% do sum investment.
These ET videos and the presenter may not be that popular as some other fin experts here... but the reason is that he sounds so sober and not so pop. The content and research points provided are rock solid nd completely enlighting !!! Highly appreciated ! 👌
Thank you for your appreciation.
I definitely agree 👍 kudos to the team ET Money👏👏
Agree completely
Felt really happy after hearing English rather than Hindi as I don't understand Hindi much.
An amazing video ! In my opinion the market cap index fund is better for long term ... take a look at the expense ratios difference.. you will find that by investing in a low expense ratio fund you’ll save almost 10 years worth of money ... always take care of expense ratio guys
Shankar Nath is the genius elder brother and guide we all need. :)
Thank you very much for your kind appreciation. Happy to play a small part in your financial journey
Very good analysis but I have a totally different view to it. What equal weighting does is it reduces weightage of biggies and increases those sectors where mcap is less. The performace of Equal Weighted index in last 1yr is better as Metals and Pharma are performing better than others like Finance, IT, Oil etc.
So my suggestion is that if you expect the sectors having higher mcap to perform, invest in mcap weighted fund. If you expect a churn in sectors and smaller ones to gain, invest in Equal Weighted fund.
If anybody knows which sectors will perform better one would just but sectoral funds or direct stocks.... why bother with index funds?
One buys index funds only if you agree that predictions are a waste of time...just buy the entire market and be done with it..
@@pran10000 Correct. Effectively Equal Weighted Index is not the whole market. It's the market with a tweak which performs better under certain conditions which I stated.
@@run.rahul.runitall Agreed.
But it also performs worse than the market under other conditions.
One has to pick their poison.
Ultimately ones benchmark is always going to be Nifty, so it makes sense to stick with it. Especially given the lower expense ratio.
I’ve never understood the appeal of an equal-weighted index fund. The beauty of a cap-weighted fund is the winners rise to the top and the losers sink to the bottom without the fund holder having to do anything. Why would you want equal parts, say, Amazon and Auto Zone?
Very useful information. There is an error in slide at 05:40 where the name of the same index funds are shown in both the tables. Please point out the correction in the video description or in the video itself.
In depth analysis. Focused based on good research. Moreover the attempt was to give fair information instead of leading to a particular conclusion. Looking forward for more on this topic.
Thank you very much for your appreciation.
Split & invest 50% equally in index funds and equal weight fund to get average returns.
How has that model performed vs just VOO or just RSP over 10,20 yrs? Hmm. I guess the RSP may not hav bn around that long.
You should have looked out for the maximum drawdown too which would have given a complete picture. Equal 50 will tend to have a higher drawdown durin bear market and will perform well in bull markets. Market weighted to funds on other hand will offer a balanced approach.
My long time doubt is cleared in this video. Excellent !!!! thank you for your detailed presentation. Much appreciated 😊
One should always strive to learn new things, more about same things and in details about new & same things. And its so much enjoying and fulfilling when its related to investments & returns. This what ET money delivers!!
First time I've come across your video. Very hones & sensible analysis and definitely your videos are the ones to follow for investment advice. 🙏🏽
This UA-cam channel never fails to deliver a super quality content! Credit to its entire team for coming up with such insightful videos
Sir certainly your are a class apart. This is a new thing which I have learnt today.
Sir I request you to kindly make videos on Intetnational Investing options, especially Fang+ by Mirae.
Thanks for wonderful.content.
Best learning video by ET money .I learned the concept of equal weight index fund.Thanks sir
Please make video on best international mutual fund
Shankar, as usual very intellectually enriching video. Keep going.
Awesome video .. just the time I am searching for this concept because of ABSL Equal weighted nifty NFO. Thanks Etmoney and Shankarji.
These videos are pure gold
Simplicity With High Clarity Video
There is a very very small insignificant difference between S&P500 Index and S&P500 Equal Weight Index. A recent update as of 30-Sep-2022 measures the 10 year Total Return (dividends re-invested) of S&P500 @ 11.70% and S&P500 Equal Weight @ 11.47% Thats a tiny tiny difference. Readers may check out US ETF "RSP". Unfortunately Indian indices are very narrow with only 50 scrips.
How ab 15 or 20 yrs? Does that factor in fees? If so, sp500 mkt weighted wins by even more. I will have to compare and also add in a 50/50 model as another option.
I’ve never understood the appeal of an equal-weighted index fund. The beauty of a cap-weighted fund is the winners rise to the top and the losers sink to the bottom without the fund holder having to do anything. Why would you want equal parts, say, Amazon and Auto Zone?
I think he has so much knowledge that average people do understand him and that is the reason we see less views although he is sharing good info on mf
Great learning through well researched presentations , thanks
Good explanation, in long term considering expense ratio & return, I will go nifty 50 index fund👍👍👍
I think investing in both is better as correlation is low in few years
@@ramyasri6093 yeah it would better to invest in both
Excellent presentation sir! M cap index I prefer
Thanks Shankar- wonderful explanation, as awlays!
Very well explained. The difference in approach has put to thought to invest in both to analyse and give weight according to performance.
Most welcome. Glad to know you liked the presentation
Learnt so much...was so easy to understand 👍🙌
Happy to help
Very nice coverage and important for new Lerner how to select right product
Excellent content. Always a great learning experience watching your videos. Keep up the good work!
Great clarity and unbiased approach. Data driven and very logical basis of each statement. Well done boss as always...!!!!👍
Excellent explanation in very understandable manner keep it up team 👍
How far back do we go for the inception of an equal weighted sp500 index fund or etf? Is a 50/50 model a smoother ride and maybe better for shorter time horizons? Many questions now but thx.
Thank-you sir
LOVE YOUR EFFORTS❣
Thank you
More videos awaited from this channel..❤❤❤
Good info. I suggest just buy the N50 and N Next 50 in a predetermined ratio. Don't bother with these fancy indices.
Any opinion N100 bro ?
@@1Bond007 Yup. I hold it too.
33% in all three funds!
@@pran10000
Hello Brother ☺, I'm in my early 20s and planning to be an aggressive equity and an ultra long term investor, basically having a higher risk tolerance and have enough patience to get high returns in a long period.
I'm gonna start my investment on APRIL 2024(next financial year). I don't have any specific goal oriented investment, better to say, that I'm investing for generational wealth creation or at least for my post retirement stage.
1. EDELWEISS Nifty 50 index fund (for Mega cap exposure) ~ 10% Allocation (0.05% ER)
2. EDELWEISS Nifty Next 50 index fund (for Large cap exposure) ~ 10% (0.09% ER)
3. EDELWEISS Nifty midcap 150 momentum 50 index fund (for Mid cap exposure - only smart beta fund in my portfolio) ~ 30% (0.14% ER)
4. Nippon Indian small cap fund (for Small cap exposure - only active fund in my portfolio) ~ 40% (0.67% ER)
5. ICICI prudential Nasdaq 100 index fund (for global exposure - only international fund in my portfolio) ~ 10% (0.50% ER)
These are my 5 Definite Index/active mutual Funds which I will start, once I opt to invest.
So literally investing in all the companies listed in the NSE from 1 to 500, where instead of investing in direct Nifty 500, I have diversified my entire portfolio based upon market capitalisation.
Investing method will be completely in step up SIP and will also actively increase or decrease the SIP regarding the market fluctuations - investing more when the market dips and less when it's at an all time high.
By saying this I have already covered my health insurance and term insurance and also have a good chunk of emergency fund.
And also I'm not interested in any other asset classes such as Savings Account, FD, RD, PPF, NPS, REITS, Debt Funds, bonds, stocks, ETF's, Cryptocurrency, Real Estates, etc currently. Maybe in my late 20s, i.e.after marriage I will slowly start to include some of the other options.
So as of now, apart from index funds I may have one more asset class - Gold via SGB (not sure even i will try this)
As I'm at the initial stage of investing, I don't want to try hands on with direct equity/stocks. As it required huge research and continuous monitoring. I love to be a passive investor, that's why I have even choose Index Funds over Active Mutual Funds.
Sorry for the long para, but I need some prerequisite context to convey my thought process towards my Investment Portfolio, so that you can get a glimpse of my investing style to guide me.
So my query is, is it really good to have only these 5 Funds in my portfolio regarding equity Funds, as inclusion of any more fund will result in overlapping. Is my investing style of only depending on Index is a good strategy, at least in my early stage of building wealth and considering my long run in investing?
And i will be pretty happy if my portfolio has a CAGR anything above 12% in the long run.
Can you share your valuable thoughts over my vision and correct me if I'm wrong?
Thanks in advance♥
Really great sir for the d simple but very fruitful presentation...Grat job...
You are most welcome
I always wanted an equal weight fund but just got to know they do exist 🙈. Thanks ET money❤️❤️
Quality content.
Loved the research
Thanks. Glad you liked it
Very good insights.
Awesome video.
I wonder y there isn't an ELSS index fund....
@@sahejg3635 ya right but I don't think ELSS funds go beyond nifty 100 companies, it'll be good to have a nifty100 ELSS fund without huge expense ratios..
Thanks for sharing detailed info
I think Nifty and Sensex are free float weighted and not market cap weighted.. ETMoney please check
Sharp insights! Thank you once again
Why doesn't the ET money app shows a ranking for Index ranking..
@@sahejg3635 thanks buddy
@@theawkwardcurrypot9556 did you get the answer for that?
Amazing! Very well explained
Sir Excellent collection of data and good information al together 👌
Thanks and welcome
Hi, useful videos as always। Pls suggest how can one invest in Icicilovol30 FoF ETF (no demat).
Amazing revealing and appreciate it.
Excellent!! Video
Brilliant presentation !
Glad you liked it!
Thanks for sharing this valuable analysis but it seems equal weighted approach is not that beneficial because even though returns are better in some cases on particular years but have expense ratio higher than Index weighted fund.
Best channel for MF investors
Over 30 years Nifty 50 index fund will be atleast 1.5 to 2 percent over nifty equal weightage index fund...if the horizon is longer one need not to choose diff mutual funds and read lot of financial books...just invest in nifty 50 index fund for 30 years and see the magic tat it completely outperform all the mutual funds existed in india
Avoid index funds
@@stayhealthy9125can i know why?
Good information thank you
Customer care number bhi nahin lag Raha hai
Sir,
Can you please make a video on REIT?
Fantastic
Thanks
very good video sir thank you
Most welcome
Great
I am looking index fund from a retirement objective.
Considering its 25-30 years away, which would be the better choice between the 2 fund
Go for the market cap fund as it’s got a lower expense ratio ... you’ll save lacs at end
Invest in Index fund where the Government EPFO or PF Or LIC is investing
One Query :-
Suppose I began buying Nifty 50 Index MF shares in 2022. One of the companies will drop out of the Nifty 50 Index later in 2024 as a result of poor performance. What will happen to the units I accumulated in my MF during the past two years ?
please response
Your shares in outgoing companies will be sold and the money will be put in buying shares of incoming company
Sir plz suggest can i continue with nippon india us equity fund or stop it 🙏
The presenter is excellent
Thank you! Do share ahead with your friends as well 😇
Hi I have a question, when we invest in a direct growth Index fund, how do we get the dividend percentages? Are they added some how or we dont get
Dividents will be reinvested, don't worry
We don't get dividend in case of direct growth. Instead of dividends you get increase in share price for same stock I.e for the dividends same stock is purchased again which means 10 Rs is dividend means same share is purchased for 10 Rs . That is why there is difference in price of direct growth stock and direct dividend reinvest .
Bahut pareshan hai sar please kuchh bataen
Sir can u give review for Axis nifty 100 index fund..
amazing content
Thank you very much
The names in table shown at 5:40 is same for both equal weight and market cap
I am going with both Market cap weighed as well as equal weighted fund.
How many return in after 5 years on 5 lac
Good one bro.
I apply in the NFO of DSP Equal Nifty fund for Rs. 15000/- whose value is now near about Rs. 19000/-. Is it worthy to hold for some more years. Please advice.
Great video, keep up the good work.
I'm intrigued to know that if Equal weight Index has given 2% to all companies in Nifty50 then shouldn't sector-wise classification also come in factor of 2 rather than uneven decimal as shown at 3:00 in video !! 🧐
Sar ET money customer care number kya hai
It is better to invest in Index fund + Small cap fund.
Sar Mera Paisa cut Gaya hai per abhi tak aaya nahin please bataen
if you are investing for long term then I think Market cap is good option and that to if linked with lumpsump investment whenever market is in correction mode. Coz if you are relying on SIP then there are chance when you buy in high and for large cap during high there market do not fluctuate for months like reliance..
So whenever there is a dip of 1.5% do sum investment.
👌🙏
Please share all notification in hindi because hindi is simple language for understanding it
Master of Mutual Funds
you need to understand the equal weigh index is more risky than market cap based index . small stocks are riskier than large cap stocks
ॐ
ॐॐ
For some very odd reasons this guy doesn’t seem genuine to me.
Selling goods on you tube
We ended were we started.
No use
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