index funds and tracking error
are all index funds offered by different amc's the same? By same I mean follow the index efficiently etc.
Which website has the most accurate data of tracking error in a fund/fof/etf?
@legend101 @Watcher @Rajkotian @Jarvis.-. @LordGane
Which website has the most accurate data of tracking error in a fund/fof/etf?
@legend101 @Watcher @Rajkotian @Jarvis.-. @LordGane
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https://www.desidime.com/comments/permalink/9553650
I don't know why people think everyone thinks the same
https://www.desidime.com/comments/permalink/9554931
https://www.desidime.com/comments/permalink/9555027
They can't be practically same. There will be tracking error. It is not completely possible to mimic index as redemptions, investments are not predictable so there will be error. Fund manager tries to stick to the mandate but some inefficiencies exist beyond their control. It is recommended to check tracking error along with expense ratio while selecting index funds. @kukdookoo
https://www.desidime.com/comments/permalink/9555035
Thanks paji. How much tracking error is ok in an index fund?
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I don't know why people make such a big deal about tracking error. For me, it is a non-issue. It could go either way.
I'd much rather look at the expense ratio.