Investment Opportunity
Do you want to participate in India's growth story & utilize the investment opportunities offered by it to build wealth?
Do you want to reduce the headache of transaction costs & the temptation of regular buying & selling?
Would you like to do this by investing only in the highest quality companies in India?
If the answer to the above is yes, IDFC Nifty Fund is the right choice for you, offering you the chance to be invested in 50 fundamentally strongest companies of the country. The fund will do this by investing your money into the benchmark S&P CNX Nifty index.
Benefits of IDFC Nifty Fund
Diversification: As the underlying S&P CNX Nifty is well diversified, the Fund will thus offer you wide diversification.
Mitigated Risk: This diversification will reduce company specific and sector-specific risk. As the Fund will invest in 50 of the fundamentally strongest companies of India, the risk of underperforming the broad market will be minimized. Liquidity risk is minimal.
Low Cost: As the Fund follows the buy and hold strategy, the turnover of stocks will be less in IDFC Nifty Fund leading to lower transaction & management costs.
Advantages of Index Funds over ETFs
Low cost: Index funds can be bought directly from the fund house while for buying ETFs you need to pay brokerage to the stock broker
Liquidity: If an ETF is thinly traded, there can be problems getting out of the investment, depending on the size of your position in relation to the average trading volume. Investors in index funds can always get the NAV at the end of the day.
Comfort: An index fund investor can achieve exact asset allocation weightings because he investor can purchase a fractional unit which is not possible for ETFs which cannot be bought in fractional units
Who is it for?
This Fund is suited for investors who wish to utilize the medium to long-term potential of the Indian stock market. This Fund is also appropriate for those who have waited for a relatively safe investment vehicle to enter the equity markets.
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