ABSL Nifty Next 50 ETF – Is ABSL MF asking you to exit Frontline Equity Fund?

how to do bitcoin trading

I have received a note from ABSL MF announcing their ABSL Nifty Next 50 ETF. The note outlines the growing category of ETFs around the world and in India. One statement caught my eye.

Popularity of ETFs have increased particularly in 2018, when Large Cap funds across industry found it difficult to beat benchmarks. 

This is a big confession coming out of one of the largest fund houses by size.

Now, I am wondering if this is a signal to the existing investors in the large cap fund of ABSL to exit and money to the Nifty Next 50 or any other large cap index fund / ETF.

The large cap fund from ABSL is the Frontline Equity Fund. At Rs. 20,000+ crores in AUM, it is one of the largest fund schemes in the industry. Not just that for that size of the fund, it commands one of the highest expense ratios – 1.17% for the direct plan and 1.97% for the regular plan.

The fund is manned by the top guy, CIO – Mahesh Patil.

Before the SEBI re-categorisation and stock universe definition, the fund picked its investments from the top 200 space. Post SEBI guidelines came into effect, it is now restricted to the top 100 space.

The fund has failed to outperform its benchmark over the past few years. You can refer to any of the online sites such as ValueResearch or MorningStar to check this fact.

As mentioned in ABSL’s own the ETF note, going forward, the fund house is unsure of outperformance. The high expense ratio will definitely work against this effort.

That’s where the new Nifty Next 50 ETF comes into the picture. Mind you, ABSL already has a giant cap, Nifty 50 ETF, but now it is expanding its bouquet of passive funds / ETFs. Why?

You see, a business mind is at work here. The shifting trend towards passive investing is visible. Online platforms, discussion forums and social media are abuzz with how the large cap space is becoming difficult to generate alpha.

The fund house becomes aware of this buzz and launches a product to get investors money and pocket a fee on it. Neat!

It’s the money, stupid.

Well, the fund house will mind its business. You have to mind yours.

As dramatic as it may sound, I ask the question – if the found house is losing faith in its own proposition of the actively managed large cap scheme, how do you retain yours? Is it not time to exit the large cap ABSL Frontline Equity Fund?

The post ABSL Nifty Next 50 ETF – Is ABSL MF asking you to exit Frontline Equity Fund? appeared first on Unovest.

forex no deposit bonus

Leave a Reply

Your Name (required)

Your Email (required)

Your Message

BonusMin. DepositMax. ReturnsRating
ayrex$10,000$20090%Rating Ayrex Options Review
$10,000$581%broker Rating Freestyle Review
Finmax$10,000$20090% FiNMAX Review
StockPair$20,000$585%broker Rating Falcon Finance Review
24optionUnlimited$25089%Top Binary Options Brokers Rating 24option Review

To invest with binary options you will work with an investment broker who is licensed to work in this field. Working with your broker, you will identify which asset you want to buy an option on, how much you want to invest and when the option will expire. Once the option is placed, you simply watch the trading activity on that asset to see if your prediction was accurate or not.

Binary options are one of the most popular trading choices for investors today, due in large part to their simplicity and the fact that you always know all the risks and payoffs ahead of time.

  • regulated: we promote only regulated brokers whose business models and marketing practices are checked by relevant government authorities.
  • special features: here we list all the important features that a broker offers. These are usually listed as perks offered trough various account types which bring different levels of service, depending on the minimum funds deposited
  • bonuses: almost every Top Binary Options Brokers offers these rewards that increase trading potential. Fair Binary Options also lists terms and conditions that come with the bonus money so traders always know how will these affect their trading efficiency.
  • the best binary trading platforms reviewed: we review the software that makes trading possible. There are several big providers, such as SpotOption, TechFinancials, Tradologic, MarketsPuls… Every software has some special characteristics, and not every software is suited for every trader
  • assets: Fair Binary Options review provides basic info on the amount of assets available for trading
  • customer support: we chat with the customer support to test how the broker has set up the help desk that should support traders. This is the best way to assess the service.
  • payments: we list all the payment options available by the Top Binary Options Brokers, list minimum deposit requirement
  • withdrawals: we warn traders if withdrawal requirements are too high, or if it takes a long time to get the money back.
    • Keras - self-learning NEURAL networks for
      Stock market forecasting
      Get it FREE

      *number of participants is limited

      Customer Testimonials

      Fellas what broker is legit in States ? binary options binary options broker USA?