This top fund manager explains how to trade Sensex and Nifty now

By: | Updated: November 2, 2017 3:22 PM

With Sensex and Nifty trading at all-time high levels, it has become increasingly difficult to find value buys in the market. As such times, one can look at investing into an index, says N Jayakumar of Prime Securities.

Dividend stocks 2017, Stock Investment, equity investment, dividend stocks, dividend stocks you must have in your portfolio, stock market, investing in sharesIndex investing can provide healthy returns, says N Jayakumar. (Image: Reuters)

With Sensex and Nifty trading at all-time high levels, it has become increasingly difficult to find value buys in the market. As such times, one can look at investing into an index, says N Jayakumar of Prime Securities. In an interview to ET Now, N Jayakumar, MD of Prime Securities said, “ Last time we talked about how indexed investing is not going to hurt people. I think index investing for a lot of people has been beneficial. You may not have got a three bagger, but you’ve got a pretty healthy growth. Portfolio’s are not made of three baggers alone.”

In August this, year, N Jayakumar had advised to invest more than 80% of the total amount passively. “80-85% of your money should be index investing for most people. I am not saying that is for specialists who whether out of our own intellectual arrogance or otherwise, want to be in individual stocks but 15-20%, of course, you can be in midcap stocks but you need to have that deep dive. If you do not have the stomach to take a 30%, you cannot sit and say I must get a 10 bagger,” N Jayakumar told ET Now in August.

Interestingly, there have been a few passively managed funds in India with which have returned more than 40% since January. The advantage with these funds is that they have a low expense ratio too, which may further magnify investor returns. ICICI Prudential Next 50 Index Fund has returned 41% since January. Notably, the Nifty Next 50 index has returned 39.8%, implying that ICICI Prudential Next 50 Index Fund has marginally outperformed its benchmark. Similarly, SBI ETF Nifty Next 50 Fund has returned more than 41.5% in the year.

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