Edelweiss Mutual Fund has filed Draft Red Herring Prospectus with the SEBI to introduce
ETFs - Exchange Traded Funds that track the following Indices,
CNX Bank NiftyNIFTY 50 and
MSCI India - Morgan Stanley Capital Index of IndiaWhy ETFs ?Hot & Dynamic Money such as Hedge Funds usually Cash in & Out of Equity Opportunities using ETFs. In the last few months, there has been tremendous demand for India's BANK NIFTY as interest Rates Head Lower helping Traders and Investors make a Killing in banking Stocks.
MCSI India index is a basked of Top Blue Chips and thus when their is a massive sell-off in Equity like the one we witnessed Yesterday, anybody having liquidity and without research want to take position, they usually end up BUYING MCSI Basket of Bluechips through ETF.
How ETFS Help Indian Retail Traders / Short Term Investors ?We have seen Huge Intra-Day Volatility with SENSEX Swining as much as 800 Points. So if you want to BUY at the Low Point, just BUY one of this ETF Basket, because your Mutual Fund NAV will be based on closing prices and carry EXIT LOAD if you want to sell within a year. ETFs are Traded on Stock Exchange.
