Passive Investors Rejoice! Mutual Fund Houses Cut Costs on Nifty 50 ETFs

Are you a passive investor? Discover how mutual fund houses are benefiting investors by cutting the expense ratio on Nifty 50 ETFs. This article discusses this game-changing opportunity!

Mutual Fund Houses Reduce Expense Ratios
  • Mutual fund houses reduced the expense ratio to benefit passive investors
  • ICICI Prudential MF and Nippon India MF reduced the expense ratio
  • Opt for ETFs with the lowest expense ratio to increase returns
  • Nifty 50 ETFs have gained significant investor interest
  • ICICI Prudential Nifty 50 ETF offers exposure to all 50 stocks 

Are you a passive investor looking to maximise your returns? Then you won't want to miss this game-changing news. Some mutual fund houses have recently taken action to benefit passive fund investors by reducing the expense ratio of Nifty 50 exchange-traded funds. With growing interest in passive funds, this move will not only bring down tracking errors but also lead to higher returns. This means that investors like you could potentially earn more. 

The expense ratio is measured by the TER indicator, i.e., Total Expense Ratio. A few mutual fund houses have reduced TER on Nifty 50 ETFs. This move will help reduce tracking errors and increase returns for passive investors.

Prominent fund houses that have reduced the expense ratio.

ICICI Prudential MF reduced the TER of its Nifty 50 ETF to 0.0279%, the lowest among peers. Last month, Nippon India MF also lowered the expense ratio on its Nifty 50 BeES to 0.037% and reduced TER on its ETF S&P BSE Sensex scheme.

Also Read: Best International ETFs to invest in 2022 for Indian Investors

What are the benefits of investing in ETFs with low expense ratios?

Opt for ETFs with the lowest expense ratios as the operational costs of managing a fund reduce overall return. The fund with the lowest expense tends to produce higher returns when two funds track the same index, experts said.

Is there any investor interest in Nifty 50 ETFs?

The Nifty 50 ETF has been one of the biggest beneficiaries of the growing investor interest in passive offerings observed over the last three years.

Also Read: ETFs: 6 Reasons they make an excellent instrument for investors

What is the cost and exposure provided by ICICI Prudential Nifty 50 ETF?

As per ICICI Prudential MF, by purchasing one unit of its Nifty 50 ETF for approximately Rs 199, investors can gain access to all 50 stocks in the Nifty 50 index. This makes investing in a Nifty 50 ETF one of the most cost-effective ways to gain exposure to the top 50 stocks in the listed universe.

Conclusion:

With reduced expense ratios, investing in Nifty 50 ETFs could lead to higher returns for passive investors. Long-term investment in Nifty 50 ETFs may benefit from India's positive growth trajectory and stock market sentiments that move with the country's economic growth.

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