S&P 500 fund is coming to India. Should I switch to it when it launches from Nasdaq 100?

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Anon9001
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S&P 500 fund is coming to India. Should I switch to it when it launches from Nasdaq 100?

Post by Anon9001 » Tue Jan 14, 2020 7:51 am

Motilal Oswal large AMC of India has recently announced S&P 500 fund for India. No news on expenses but the regulator has a maximum limit of 1% for index funds so it will be 0.5-0.9% most likely. The Motilal Oswal Nasdaq 100 ETF costs 0.54% TER. Is it worth it to switch to this when it launches?

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JoMoney
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Re: S&P 500 fund is coming to India. Should I switch to it when it launches from Nasdaq 100?

Post by JoMoney » Tue Jan 14, 2020 9:27 am

The big advantage with index funds, is extremely low cost. Making the decision without knowing the cost wouldn't suit me at all. I'm not a fan of making changes in the the overall makeup of the portfolio anyway, so if this wasn't simply a change from a higher cost fund into an equivalent lower cost fund, it would probably a raise a flag that you're playing too much with your portfolio.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

Topic Author
Anon9001
Posts: 225
Joined: Fri Dec 20, 2019 9:28 am
Location: भारत

Re: S&P 500 fund is coming to India. Should I switch to it when it launches from Nasdaq 100?

Post by Anon9001 » Tue Jan 14, 2020 9:29 am

JoMoney wrote:
Tue Jan 14, 2020 9:27 am
The big advantage with index funds, is extremely low cost. Making the decision without knowing the cost wouldn't suit me at all. I'm not a fan of making changes in the the overall makeup of the portfolio anyway, so if this wasn't simply a change from a higher cost fund into an equivalent lower cost fund, it would probably a raise a flag that you're playing too much with your portfolio.
True although it is likely going to be priced at below 1% as regulator here sets this limit at the TER. We can assume 0.90% TER. The primary reason I am interested is the very top heavy nature of Nasdaq 100 and sector concentration. 50% in 10 companies and 50% in Tech :oops:

Topic Author
Anon9001
Posts: 225
Joined: Fri Dec 20, 2019 9:28 am
Location: भारत

Re: S&P 500 fund is coming to India. Should I switch to it when it launches from Nasdaq 100?

Post by Anon9001 » Tue Jan 14, 2020 9:31 am

JoMoney wrote:
Tue Jan 14, 2020 9:27 am
The big advantage with index funds, is extremely low cost. Making the decision without knowing the cost wouldn't suit me at all. I'm not a fan of making changes in the the overall makeup of the portfolio anyway, so if this wasn't simply a change from a higher cost fund into an equivalent lower cost fund, it would probably a raise a flag that you're playing too much with your portfolio.
Also I forgot to mention this before but ETF's here don't track the NAV perfectly and have liquidity issues. The S&P 500 fund is going to be index fund only so no issues like ETF's will be present.

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