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.
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.