In present condition of market, is it worth to buy any ETF's, which one is having lowest cost and also gives better return? I wish to hold it for long period.
- Tracking errors
- Expense ratio.
Of the top of my head, I don't know the tracking error percentage of different index funds, but an article I had read 4-5 years back showed that UTI Nifty Index Fund had the lowest tracking error at that time - it's not an ETF, though. I also think Benchmark ETFs have low tracking errors.
You can compare expense ratios at valueresearchonline.com.
If you want to hold one for a year - I would recommend the UTI Nifty Index fund.
The expense ratio is 1%.
If you want to hold for 3-4 years, I would recommend Benchmark Nifty Index ETF - this has an expense ratio of 0.5% but you will have to pay brokerage at both buying & selling time - so this is good if you are holding for a long time.
Nifty Index composes around 60% of the NSE market capitalization.
If you want to add a second index, add the Nifty Junior - Benchmark has an ETF tracking this. Nifty + Nifty Junior would cover around 70% of the NSE market cap.
Benchmark Nifty Junior has an expense ratio of 1%.