Index Investing: Basic Questions Answered for Beginners

[@jasjyotajrawat2364]

All honest financial advisers are promoting Index Funding : + be it Varun Malhotra, Bhusan Godbole, Mukul Aggarwal or Manoj Kumar Jain However the concept has been explained in a well comprehensive manner by Mr. Pattu. His strategy of allocating 60-70 percent in Nifty blend and rest in actively managed mid cap Fund is the best you can get Thanks Sir.... With your video my search ends , I suppose.

[@Vijay55234]

True.. Varun malhatro is also promoting index funds

[@bhavanajindal676]

I recently started an sip. I don't have much knowledge. First time i understood what is index funds. Thanks for good video. I was thinking from long time to start an sip in ICICI pru sensex index ..but i did not know exactly what is index funds doing

[@Vivek-rg1we]

OH S*it i have been doing "nifty blend" before knowing about this video!!! Now i got a name for my strat!!! lol !!, it was 12th question i was looking for, thank you sir, just God like~~!!

[@nirmalde3467]

Sir I have just started following you and I must say you are doing a wonderful work. One query which is making me perplexed is that how the NAV of IDFC Nifty fund has higher value for dividend option rather than growth option in both direct and regular plans

[@shyamtinwar4035]

Thanks for making video on suggestions. May be you can make an video on, a person has bought 10 actively managed fund 4 year back (may be not having enough knowledge at that time) and his annualized return is 2%. What should he do, going forward ? Should he stop SIP in old funds and start investing in index fund? or continue old actively managed funds? May be find scope to reduce funds? Etc.

[@pattufreefincal]

Actually, I was going to write about this tomorrow! Will do

[@greatuniverse5197]

Here also Same problem bro.. My portfolio returns are very less than bank fixed deposits.. Most of them are in red

[@maitreyeekarmakar6429]

Where is this video? Can you share the link?

[@aruprakshit7218]

You made picking index fund so easy that.. next morning I am going to do it 😁

[@deepakbiradar6317]

Great way to help .. would love more of these 🙏🏻

[@rajnawal4564]

Sir your depth in the subject matter is tremendous . Thank you for sharing your wonderful analysis. Wanted to know : whether we should look ER , AUM size and cash holding before selecting an index fund for nifty 50 and next 50 ? Thank you

[@5966ramesh]

Perfect video sir. Absolute clarity and to the point explanation. Thank you.

[@josephsujai5543]

Thank you Sir. It's a fantastic video. Gave us so much info.

[@arunsingh-bk5wy]

Hi sir 1.What is nifty alpha 50 and should be considered inventing in it ? 2. where can I buy nifty next 50?

[@poonambhatia1678]

I choose Nifty blend 😍

[@DD-cq9lg]

i am investing in stocks through mutual funds. should i also need to have some individual stocks for any reason?

[@rajandargan]

S&P 500 index investing by Motilal oswal- Can it be made a part of index blend?

[@WildLeghorn]

Why should one choose index funds instead of ETF like nifty bees? Pls explain...

[@Suresh-454]

Liquidity will be the problem. Though ETFs are traded, volumes are very less.

[@WildLeghorn]

@@Suresh-454 Volumes are very less? Volumes are in lakhs. How much are you going to buy that you need so much volumes? For passive long term investment of 5yrs or more what use is the volume gonna be? Low expense ratio of etf bigger advantage compared to mutual funds.

[@okkamrazor9557]

Thanks a lot, very helpful

[@rohanr221]

Sir, is there any tool where I can compare an actively managed mid cap fund with a nifty next 50 index?

[@fenildoshi7547]

Sir i follow your channel from months and like your all videos..my current age is 20 please suggest me should i go with index or actively manage fund.

[@madhavraj1650]

Invest UTI nifty index fund UTI nifty next 50 fund And one small cap fund you choose

[@fenildoshi7547]

@@madhavraj1650 Thank you for your suggestions.

[@pattufreefincal]

@@fenildoshi7547 I do not disagree with above suggestions, but first start with the Nifty 50 and Nifty Next 50 funds, get used to the volatility and then you can add the smallcap fund

[@fenildoshi7547]

@@pattufreefincal Thank you so much Sir for replying. I'm currently started investing from Diwali it has not been an Month i have started know i thing to convert 70-80% of my portfolio to index fund.. Thank you for your guidance 🙏

[@AbhiCrux]

@@pattufreefincal if I'm looking for a 15 years horizon, small cap and mid caps are worth? I know they are extremely volatile in short term, how about long term? I want to invest in a long term small and mid cap funds. Will the long term negate the short term volatility similar to large cap funds?

[@lakshmimaha7153]

Quick question please 🙏 Will there be any difference in buying index fund with low vs high NAV value.. EX. HDFC sensex is around some 393 rs whereas ICICI sensex is 13 rs.. As they both are tracking index I believe it doesn't make any difference when it comes to profit.. However would like to hear expert view on this

[@workrelated2393]

same question

[@venkatsudheerreddy4109]

Hi Sir, Thanks for the given information. Recently I started investing in mutual funds and I thought I was a risk appetite and started a SIP in SBI small-cap fund. Is that a wrong move? should I exit or continue with that? Other than that I have 2 ELSS funds and 1 Nifty Index Fund in my portfolio.

[@ashwarya26]

Just keep 2 funds : UTI Nifty Index Fund & Nifty Next 50 Index Fund in 60:40 ratio. Get rid off other funds

[@arunsingh-bk5wy]

@@ashwarya26 were I can but nifty next 50

[@ashwarya26]

@@arunsingh-bk5wy Groww App, Do KYC and get started

[@ankitshah2686]

Hi Pattu. When it comes to index investing, I have heard suggestions about only Nifty and not Sensex. Can you please explain why?

[@pattufreefincal]

You can use Sensex no prb at all. Returns will be pretty much the same as Sensex

[@vishwadeepmann147]

Hello sir, what is appropriate time to invest in index fund . Right now p/e ratio of nifty next 50 is 28 which shows market is overvalued and May fall down. Is timing related to p/e ratio?

[@pattufreefincal]

If ou want to time the market with PE have proper strategy

[@vishwadeepmann147]

Is it right time to invest lumpsum money in index fund or SIP is better way

[@shyamtinwar4035]

What if I do SIP or lumsum transfer on weekend or national holidays. Would I get units according to NAV on same day or next business day when market opens(and with new rate of that time)?

[@pattufreefincal]

You would get it net business day NAV and NAV is ONLY decided AFTER the market closes

[@shyamtinwar4035]

@@pattufreefincal you mean next business day? Does MF NAV move as index move, throughout the day and final price decided at end of day? What if market fall 1000pt till afternoon and I want to push lumsum money?

[@learner8912]

Tq sir well explained,. But still I confusing how did I start investing , how did i buy nifty 50 and nifty next 50

[@PrashanthGiridharan]

Direct AMC websites or third part apps like PayTm Money, Groww or ET money.

[@vaajiyuva9913]

Am investing in HDFC small cap fund now i feel that i should stop investing and start investing in index funds. Is it good idea

[@indrajitauddy6958]

Sir please advise what tactics should one use to time the market and change the sip proportion of N50 and NN50.

[@irfannadeem9664]

When market is high move to debt funds ... Rebalance ... And once market is coming down deploy slowly from debt funds.

[@indrajitauddy6958]

@@irfannadeem9664 But the question is how to know whether market is expensive or not.

[@irfannadeem9664]

@@indrajitauddy6958 look for PE ratios . Sharpe ratios. He has videos about that ..or else Google.

[@ahamedkabir2006]

Hello Sir, in my port folio have all ready have 2 multi caps and 1 small cap, 1 large & mid cap funds , i can change my portfolio at this point of time like market down? also i concern STCG or LTCG

[@rahulk4973]

Very informative sir, how about the liquidity of Index funds

[@samratbanerjee3589]

Pattu Sir.. i have Rs 70,000 invested in small cap in a portfolio of 3 lacs. I want to switch that from small cap to index fund. Should i switch that Rs 70,000 in one shot at index funds or in regular intervals..plz advise..

[@kathikabaab]

Sir should we do SIP or can invest lump sum... If the investment horizon is long

[@gaurav5161]

Thanks a lot

[@sachin2790]

Beautiful explained

[@pattufreefincal]

thank you

[@expertanupam]

Dear sir, Should I buy mutual fund which track etf or should I take directly ETF

[@pattufreefincal]

not etfs in an y form. Buy index funds

[@jackkim7871]

Nifty 50 ,nifty next 50 from any fund house like axis or icici or hdfc or any other.plz explain I'm an investor without required technical knowledge.

[@irfannadeem9664]

Uti is best for index funds

[@sarthakmohapatra3738]

Nice Latthu sir

[@wroomauto7615]

Why sovereign gold bonds SGB are traded at lower prices in the NSE compared to the market price of 24k Gold

[@nomadseeker584]

How about combining nifty etf and gold etf to hedge ..niftybees..?

[@anoop141186]

Sir, What about multi asset allocation funds, can we use them with a midcap fund?

[@kunalpalshukla2150]

Good video Sir. Thanks for sharing

[@pattufreefincal]

Thank you

[@shobhakoranne7048]

I have invested in Junior NIFTY from RELIANCE and Kotak nifty 50 ETFs ..." IS IT A GOOD COMBINATION ?

[@poonambhatia1678]

Best video

[@susmith246]

Can you give your views regarding nifty 50 equal weight mutual fund

[@aruldilip9430]

Do we need to consider NAV for selecting MF or index fund

[@pattufreefincal]

no

[@freelancestuffs611]

Is there any dividend if I invest in Nifty ETFs?

[@akalawfirmlawyers1309]

Thanks n it's good. Plz suggest funds in nxt vdo,if convenient.

[@pattufreefincal]

I have already done this in previous videos

[@sivakrishna2314]

Can I invest in UTI nifty next 50 index fund???

[@pattufreefincal]

yes if your portfolio needs it

[@niketnarang4435]

What is difference between ETF and index fund? I tried sorting the funds in value research and see there are SBI EF Nifty 50 and SBI ETF Nifty Next 50 funds but not sure if they are same as index funds. The ER for above funds is 0.07 whereas the ICICI Pru index funds is 0.44. Can you please also explain why such a difference? Thanks in advance.

[@pattufreefincal]

ETF has the same portfolio as an index but you need a demat account to buy and sell units from other unit holders See freefincal.com/how-etfs-are-different-from-mutual-funds-a-beginners-guide/

[@niketnarang4435]

@@pattufreefincal Thank you. So you refer to ETF funds when you suggest investing in index funds?

[@anil0407]

Does index funds have compounding benift? If so please explain

[@pattufreefincal]

no fund has compounding benefit. All incl index funds have compounding benefits

[@venkatasureshjetteboyina3495]

@@pattufreefincal what is meant by incl???

[@kirubakaransujanaranjan2877]

There is been lot of talks like active funds protect downside during fall while index investing do not. If possible, can you make a video about active vs passive during bear markets. As you rightly pointed out only 40% mf beat index and that too IMO tough to predict which mf would fall into 40 %.

[@pattufreefincal]

I will see what I can do, thank you

[@hiteshshetty81]

@@pattufreefincal True, how do index funds perform in a bear market? I assume it'll perform worse than active ones since it just blindly follows the index.

[@BasavarajTonagatti]

Hi Pattu, Can you do some study on how many active funds actually have a downside protection with respect to Index exactly like how you did by showing around 40% of active funds only beaten the Index? This clears the dust about the myths we have about active funds.

[@pattufreefincal]

Thanks Basu. This is available in the monthly screener lists. ABout 70% or so funds in each category manage to do this, but let me post no in a details study

[@Tejas.32]

Suggest some elss funds sir

[@pattufreefincal]

See freefincal.com/september-2018-plumbline/

[@saipraveen2]

Hi pattu sir...i set my portfolio with nifty blend. But to get an aggressive hybrid fund in to the core...i see a min portfolio overlap of 30% between the sensex 30 fund & all the funds in aggressive hybrid category...what is the min overlap you think is ok,,,mudinja please write or make a video about it.

[@pattufreefincal]

My two cents: Do not worry about overlap

[@saipraveen2]

@@pattufreefincal tq

[@dhruvsharma1110]

Any ELSS fund tracking index?

[@Pradeep-nv8zl]

Yes.. i too want to know?

[@akshaygupta19]

No

[@vikramchawan3882]

Please do voice editing

[@pattufreefincal]

I had a cold . Cannot spend time editing. Dont have the time

[@rajeshpg99]

Pattu sir, kindly share your email id.

[@pattufreefincal]

freefincal AT gmail

[@rajeshpg99]

Thank u.

[@wroomauto7615]

Why sovereign gold bonds SGB are traded at lower prices in the NSE compared to the market price of 24k Gold

[@wroomauto7615]

Why sovereign gold bonds SGB are traded at lower prices in the NSE compared to the market price of 24k Gold