Building a Strong Portfolio with Angel One Nifty Total Market Index Fund

In the world of investing, one of the most critical decisions is how to structure your portfolio. Whether you’re a seasoned investor or just getting started, building a well-diversified portfolio that can weather different market conditions is key to long-term success. An increasingly popular and effective way to achieve this is by using Exchange-Traded Funds (ETFs) as the core holding of your portfolio.

What Are ETFs?

Before diving into how ETFs can be used as a core holding, let’s briefly define what ETFs are. An ETF is a type of investment fund that is traded on an exchange, much like a stock. However, unlike individual stocks, an ETF typically holds a broad basket of assets, such as stocks, bonds, commodities, or other securities. This allows investors to gain exposure to a wide range of assets through a single trade.

Portfolio Diversification with Angel One Nifty Total Market Index Fund

Lately, Angel One MF has launched the Angel One Nifty Total Market Index Fund, for which NFO opened on February 10, 2025 and closes on February 21, 2025.

The Angel One Nifty Total Market Index Fund is a passively managed index fund aimed at replicating the performance of the Nifty Total Market TRI. To achieve this objective, the fund will invest in the securities that make up the Nifty Total Market Index in the same proportion as they appear in the Index.

The fund will adopt a passive investment strategy. The performance of the fund may not align with the benchmark’s performance on any given day or over any specific time period.

Why Use ETFs as the Core of Your Portfolio?

ETFs are gaining popularity as core portfolio holdings for several key reasons. Here’s a breakdown of why they’re an excellent choice:

• Diversification Made Easy: One of the most important principles of investing is diversification – spreading investments across a range of asset classes to reduce risk. ETFs are inherently diversified because they typically hold a wide range of securities.
• Low Cost: ETFs are generally known for their low expense ratios compared to mutual funds or actively managed funds. With a low-cost ETF, investors can access a wide variety of assets at a fraction of the cost of traditional funds. The lower fees mean that more of your money is working for you over time, leading to potentially higher returns in the long run.
• Flexibility and Liquidity: Unlike mutual funds, which can only be bought or sold at the end of the trading day, ETFs trade like stocks on an exchange, meaning they can be bought or sold throughout the day at market prices. This provides investors with flexibility, as they can react to market events in real time, rather than waiting until the end of the day to make a trade.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.