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 The Analyst Magazine:
NIFTY and the Kebab Platter : Be Passive and Sleep Well
 
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Index ETFs are a better and efficient way to take exposure to any index. Being passive is safer than being active and run the risk of buying wrong stocks and incur losses. Mostly, returns from index funds are similar to overall markets.

 
 

Recently, I had a friend of mine from the US visiting India for the first time. And as we all do when anyone from the US visits us for the first time, I took him to an authentic but expensive Indian restaurant for lunch. My friend was fond of food in general, but had never tried Indian food.

As soon as we occupied our table, the restaurant staff came up with the menu card to take the order for food. My friend had heard about Indian kebabs in the US. He sought my advice on it. I quickly moved that responsibility to the restaurant manager, whom I knew very well. The manager blurted out 20 types of kebabs in rapid succession, which he felt that my friend should indulge in, right from Seekh Kebab to Paneer Kebab to Shahi Kebab to Kakori Kebab, etc.

My friend was thoroughly confused with the names and was not able to decide on which kebab to order, but was keen on tasting all of them, at least some of them. I thought to myself with so many options on kebabs, which one would my friend relish? Should I take the risk of ordering one of the kebabs and my friend not liking it at all? If he doesn't like, each portion which costs around Rs 400 would go waste. Or should I order all which would be much more expensive and again some of everything would go waste. I was not willing to disappoint my friend, yet wanted to diversify the risks of my losses too.

 
 

The Analyst Magazine, Index ETFs, Indian Restaurant, Stock Markets, Money Management, Indian Markets, Exchange Traded Fund, Index Funds, Equity Funds, Market Capitalization, Tracking Error, NIFTY Index.

 
 
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