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Can I invest in S&P500 Index fund, while residing in India You can invest in US funds. Under the Liberalized Remittance Scheme one can invest up to USD 250,000 per year. Option 1: Open an account with an international broker. This is time consuming and KYC etc would take time. Transferring funds will also involve a bit of paperwork. You can then invest ...


11

Usually, I go with a broker (share trader) that deals specifically with buying and selling securities. Looking at this page gives a list of possible brokers in the EU and elsewhere. The other way to go is to choose your index fund and invest directly with the company that operates it. For example, I believe Vanguard offers this in the UK. Opening an ...


10

Because you're buying at different times. Total annual return looks at the value today of $X invested on Jan 1 2015. But you don't have $X invested on Jan 1, 2015, you have: $Y on Jan 1, 2015 $Y on Jan 15, 2015 $Y on Feb 1, 2015 etc. where the sum of the Y values is X that you're trying to compare You have a different average unit cost and that impacts ...


9

Member mhoran's comment was an answer. why not just invest with any of the dozens of mutual fund companies that have an S&P 500 index fund or ETF? The ETFs are more commonly not leveraged. Of course, some are, so you'll avoid those. But the ticker SPY is the most popular one and it reflects no leverage at all. You get the return of the S&P ...


8

I don't need funds at this time. Then there's nothing to do. If the strategy is "buy and hold" then you keep holding. When you need capital you assess your allocations and potentially sell some of this position. If you think you have allocation issues now, then the decision to reallocate anything would have to include an assessment of all your assets (...


7

From what I see, the NAZ composite was down 2.21% on 12/24 and the QQQ was down 2.76%. Note that the QQQ is an ETF and it can trade at a premium or a discount due to excessive buying or selling pressure. Given that the market lost ~3% on 12/24, it's a likely culprit. The other factor is that the QQQ went ex-div for $0.421 on 12/24 and the share holder will ...


7

For the money in the beneficiary IRA, you should be able to pick from a group of Investments. This can include stock funds, bond funds, and even individual stocks. Those funds can be mutual funds or Exchange traded funds. It is likely among those lists of options some will be index funds, which are great because of their low costs. If you have earned income ...


6

The fact that a fund is an index fund doesn't automatically make it good choice for your situation, or even this investing environment. An index fund is a fund that is designed to match a benchmark. Because the fund doesn't need a staff of analysts to make investing decisions it has lower expenses. The index fund will also only make changes in the makeup of ...


6

Actually the link you provided in your question, gives you all the information you need. The fund has an load fee "Ausgabeaufschlag" of 3,75% and a TER (Total Expense Ratio) of 1,43% per annum. A somewhat similiar ETF, to compare your fund with, is iShares Dow Jones Global Titans 50 UCITS ETF (ISIN DE0006289382), which has a TER of 0,51% and no load fee. ...


6

I found a good article about how Standards & Poors decides which companies are included in the S&P 500 index. It's from quite a while ago (year 2000), but it's somewhat definitive as it was written by David Blitzer himself. See ETF.com - Here, At The S&P 500 (archive copy). While the article focuses on the criteria for company inclusion in the ...


5

Courtesy of Investopedia https://www.investopedia.com/terms/t/trackingerror.asp Tracking Error = Standard Deviation of (P - B) For example Note Compare is a scaled version of Pprices. Pprices = 1000, 1100, 1150, 1300, 1250, 1150, 1200 BmkIndex = 1050, 1150, 1200, 1350, 1300, 1200, 1150 Compare = 1000/1.1, 1100/1.2, 1150/1.3, 1300/1.4, 1250/1.5, 1150/...


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There are 2 aspects to your questions as I perceive it. Whether or not you are eligible to invest in it as a non-US resident and whether or not you have access to it outside the US. The short answer to both is yes. You're perfectly fine to invest in USA based ETFs as a non-resident. The second part I cannot help directly with since I'm not based in India ...


5

The quote you are asking about is a footnote to the fund expenses/fees, which is listed as 0.26%. I’m not completely sure, but I believe that this note is saying that the fund sometimes lends out its assets (as you might do for someone who is shorting stock), and the revenue generated by that activity might lower the expenses beyond the percentage listed. As ...


4

The answer boils down to, are publicly-listed companies able to grow earnings faster than the rate of inflation? If the answer is "yes", then no surprise that the S&P500 grows faster than inflation. And the answer is unequivocally "yes". According to this CNBC article from July for example, we're currently in the midst of an earnings boom with earnings ...


4

Imagine two companies - one worth $1 Million that has 10 shares outstanding, and one worth $10 Million that has 10 Million shares outstanding. The shares of the first company will be worth $100,000, each while the shares of the second company will be worth $1. Is the first company 100,000 times "better" than the second? Prices are not directly comparable ...


4

After the fact, you can point to a few active managers who have done very well (see Buffett, W.). But you don't know in advance who they will be. So, you have to think in terms of the expected performance of an active fund. Then, you realize that the market is made of traders constantly buying and selling from each other (and extracting fees) trying to get ...


4

When shares are borrowed for the purpose of shorting, a borrow is fee charged by the brokerage firm to a client who borrows the shares. If the broker does not have lendable shares in house, it will have to borrow the shares from another broker to effect this and the brokers will share the fee. Some brokers share a portion of this fee with the lender (...


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Per your link, you own 1.89% FB. Multiply that by $200k and you have $3,780 of FB risk. FB is approximately $175 so you'd short 22 shares for a credit of $3,850. The additional credit of $70 would coincidentally de-risk FB from the additional index purchase. At my broker, the borrow rate for FB is currently 0.25% and the annual borrow fee for this ...


3

To calculate it, would I simply take the last 1 year return percent, and subtract that from the benchmark's change? That would give you a single data point, which probably isn't very meaningful. Suppose there was no difference over the year, but a huge tracking error over the first 6 months, which was reversed in the second 6 months? To calculate a ...


3

You need to ignore past performance when making a decision to keep or sell investments. That is the sunk cost fallacy that imperils many investors encouraging them to sell when the price is low out of fear. The real question you should ask is if you had never invested before in these funds would you invest in them at today's price, because that is what you ...


3

Welcome to this site and the area of investing. The question you are asking, believe it or not, is behaviorally based not mathematically. Would this fund still be a good deal if you got a 10% average return? Yea, very much so in the current interest rate environment. Now the obvious point is that many people, such as myself, cannot purchase this fund as ...


3

What happens when the bottom stock is overtaken by a stock that isn't in the index? Nothing really. What actually matters is what happens when an index is updated and a few companies are in/out. This kind of events depends on each particular index, but in most cases they get updated every three months or annually (see this example for all the historical ...


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Your account value is simply the number of shares you own, multiplied by their price, plus any cash in the account. It's a simple consequence of mathematics that if the share price is increasing, but you are holding the account value constant by withdrawing gains, the number of shares you own must decrease. It also follows that you would not "run out of ...


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This hypothetical is purposefully ignoring the fact that index funds don't normally have a fixed constant growth rate to address the question of whether I'd run out of money by always selling equal or less than the amount by which the account grew each year. That's a pretty important fact to ignore, but let's roll with it. IF the investment had a constant ...


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An ETF is only somewhat open-ended in that shares are created or dissolved only on certain conditions of large orders. And so the ETF can trade at a premium or discount based on demand of the stock market. An open-ended mutual fund trades only at net-asset-value and there is no premium or discount because shares are created or dissolved based on every ...


3

Reading the factsheets [1,2] that are available for MSCI USA, it appears that MSCI calculate the performance of the index both as net total returns and gross total returns. The make-up of the index, in this case approximately 85% of US market capitalization, is the same in both cases. In other words, the performance of a single index can be calculated more ...


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VTSAX uses the CRSP US Total Market Index. At http://www.crsp.com/indexes-pages/crsp-us-equity-indexes-methodology-guide you will see a download named "The CRSP U.S. Equity Indexes Methodology Guide" as well as highlights showing the goals, several of which are related to weighting (allocation): Breakpoints based on cumulative market capitalization ...


3

I don't think you've been buying index funds I'm noting what they say on their website: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take ...


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It depends. Actively managed funds which aren't tasked with following a specific index would certainly sell their shares in a situation like this. Passive funds which track an index would, naturally, follow what the index does.


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I think that accountant is talking nonsense. Sure, if your LLC invests money, and that money makes profits, the LLC pays taxes on those profits. But you still have those profits. If you take the money as dividend payments, and invest it, you pay a lot more taxes straight away.


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