Choice Nifty 50 Index Fund Direct-Growth
Key Talking Points
Low tracking error
Tracking error of the Index fund (0.17%) is low
This is a measure of how well an Index fund/ETF has been able to replicate the performance of the benchmark its tracking. As a passive investor, lower tracking error is always better
What is Tracking Error?
Relatively high expense ratio
Expense ratio of the Index fund (0.76%) is higher than average expense ratio of other Index funds/ETFs (0.43%) tracking NIFTY 50 Total Return Index
This measures the relative expense of the index fund/ETF with respect to average expense ratio all index funds/ETFs tracking the same benchmark. Investors should always prefer schemes with lower expense, everything else remaining the same
What is Expense ratio?
Relatively high tracking error
Tracking error of the Index fund is higher than average tracking error of other Index funds/ETFs (0.08%) tracking NIFTY 50 Total Return Index
This measures the relative tracking error of the Index fund/ETF with respect to average tracking error all index funds/ETFs tracking the same benchmark.
What is Tracking Error?
Not enough performance data
Since this is a relatively new scheme (less than 3 years), we do not have sufficient data to conduct meaningful performance analysis
Scheme Overview
The Scheme seeks to generate return that are commensurate with the performance of the NIFTY 50 index (TRI), subject to tracking errors.