17 Jun | On the Radar – Lyxor ETF India
I’ve long been bullish on the Indian economy and have watched it’s emergence as a burgeoning economic power with genuine interest over the past decade.
Now, it’s time to put my money where my mouth is and what better way, than with an Exchange Traded Fund (ETF). Exchange Traded Funds are index-linked funds that are tradeable just like normal equities. Their aim, simple, to closely replicate an Index or selection of equities.
So I guess you can see where I’m going with this. The Lyxor ETF India does exactly what it says on the tin. The Index it is replicating? The S&P CNX NIFTY Index (the nifty fifty) is the leading index for large companies on the National Stock Exchange of India.
The beauty of investing in a country-based ETF? Well you get all the healthy goodness of good slice of a market that to most investors, is out of reach (or presents impracticalities). It’s handled by a Fund Manager (for a percantage of the fund) who usually has a pretty good handle on the market they specialise in and the entry and exit costs are minimal (your usual broker fees apply).
So now it’s a case of sitting back and letting the world’s second most populous nation get on with its economic thing.