ETFs – Exchange Traded funds are great low cost options compared to mutual funds.Investor can invest in bunch of stocks through representing ETF.Such as if you want to invest in stocks representing SENSEX or NIFTY then you can invest in SENSEX or NIFTY ETF rather than index funds.
LIC Nomura MF has come up with an NFO – NIFTY 100 ETF which will provide returns that closely corresponds to returns of securities represented by NIFTY 100 index subject to tracking error.
As weightage of securities within index is dynamic factor, there will be tracking error from ETF side.
NIFTY 100 Stocks includes:
- ACC,
- Adani Ports & Special Economic Zone Ltd,
- Ambuja Cement Ltd,
- Apollo Hospital,
- Ashok Leyland,
- Asian Paint,
- Aurobindo Pharma,
- Axis Bank,
- Bajaj Auto,
- Bajaj Finserve,
- Bajaj Holdings Ltd,
- Bank Of Baroda,
- Bank Of India,
- Bharat Forge,
- Bharat Heavy Electricals Ltd,
- Bharat Petroleum,
- Bharti Airtel,
- Bharti Infratel,
- Bosch Ltd,
- Britannia Industries,
- Cairn Industries,
- Canara Bank,
- Cipla,
- Coal India,
- Colgate Palmolive,
- Container Corporation Of India,
- Cummins India,
- Dabur India,
- Divis lab,
- Dr,Reddy’s Lab,
- Eicher Motors,
- Exide industries,
- Federal Bank,
- Gail,
- Glaxosmithline Consumer healthcare,
- Glaxosmithline Pharma,
- Glenmark,
- Godrej Consumer consumer products,
- Grasim Industries,
- HCL Tech,
- HDFC,
- HDFC Bank,
- Hero Motocorp,
- HPCL,
- Hindalco,
- HUL,
- ICICI Bank,
- ITC Ltd,
- IDEA Cellular,
- India bulls Housing Finance,
- IOCL,
- Infosys,
- IndusInd Bank,
- JSW steel,
- Kotak Mahindra Bank,
- L&T,
- LIC Housing Finance,
- Lupin,
- M&M Fin.Services,
- MRF,
- Mahindra & Mahindra,
- Marico Ltd,
- Maruti Suzuki,
- Motherson Sumi,
- NMDC,
- NTPC,
- ONGC,
- Oil India,
- Oracle financial Services,
- PetronetLNG,
- Power finance corporation,
- Powergrid,
- PNB,
- Reliance Capital
- Reliance Industries
- Reliance infra
- RCOM
- REC India
- SBI
- STFC
- Siemens
- SAIL
- Sun Pharma
- Sundaram Finance
- TATA Chemicals
- TCS
- TATA Global Beverages
- TATA Motors
- TATA Power
- TATA Steel
- Tech mahindra
- TITAN
- UPL
- Ultratech Cement
- United Breweries
- United spirits
- Vedanta
- Wipro
- YES Bank
- ZEE entertainment ltd.
NIFTY 100 ETF will simulate NIFTY 100 index and will have above constituents.
ETF benefits:
- Low cost structure: Due to passive style of investing it has low cost compared to actively managed mutual funds.
- Better risk management against individual stocks : As investor is investing in bunch of stocks it will offer better risk management against investing in individual stock.
- Easy liquidity : ETFs are traded online so can be sold subject to available liquidity.
Demat account is necessary to invest in ETFS.But you can apply offline within NFO period.Its mandatory to enter demat account details. LIC Nomura MF NIFTY 100 ETF NFO is available till Marach 11, 2016 thereafter it will be listed at exchanges and trading will be possible thereafter.
