MASSIVE (70-100%) Returns By 3 INDEX Funds - DON'T Miss this video | Rahul Jain Analysis #profit

Summary

This video explores high-performing index funds, highlighting three funds that have delivered over 70% returns in a year. The BSE Enhanced Value Index Fund, Nifty Alpha 50 Index, and Nifty 200 Momentum 30 Index are scrutinized for their historical performance, construction methodology, and sector allocation. The video also discusses investment options, including ETFs and index funds, and provides insights into their liquidity and risk-reward profiles, guiding viewers on making informed investment decisions.

Takeaways

• 😀 The video discusses the high returns of certain index funds, with some yielding 70%, 80%, or even 90% returns in the last year.
• 📈 The BSE Enhanced Value Index Fund has significantly outperformed the Nifty 50 index in various time frames, offering nearly 92% returns in the last year compared to Nifty's 30%.
• 📊 The Enhanced Value Index Fund selects 30 value stocks out of the top 250 companies listed on BSE, based on value factors like book value to price, earnings to price, and sales to price ratios.
• 💡 The sector allocation of the Enhanced Value Index Fund is diverse, with finance, oil and gas, and metal products mining being the top sectors.
• 💼 Investment options for the Enhanced Value Index Fund include an index fund and an ETF, with the former being recommended due to liquidity concerns with the ETF.
• 🚀 The Nifty Alpha 50 index has also provided impressive returns, with nearly 80% in the last year and 35% over the last five years.
• 🔍 Nifty Alpha 50 selects top-performing stocks based on the Alpha factor, indicating outperformance relative to the market.
• 📉 However, during bear markets, both the Enhanced Value Index and Nifty Alpha 50 have shown to potentially give higher losses compared to Nifty 50, indicating higher risk.
• 🌐 The Nifty 200 Momentum 30 index focuses on the top 30 momentum stocks from the Nifty 200, aiming to capture stocks that have shown strong price performance in the past year.
• 📊 The Nifty 200 Momentum 30 index has demonstrated higher returns over various time horizons compared to both the Nifty 200 and Nifty 50 indices.
• 💡 Investment in the Nifty 200 Momentum 30 index can be done through ETFs or index funds, with considerations for liquidity and expense ratios when choosing an investment vehicle.

Q & A

What type of investment funds are discussed in the video?

The video discusses index funds, specifically those that have provided high returns such as Nifty50 and other index funds that have given more than 70%, 80%, and 90% returns in the last one year.

What is the significance of the BSE Enhanced Value Index Fund mentioned in the video?

The BSE Enhanced Value Index Fund is highlighted for its impressive returns, outperforming the Nifty50 index in various time frames like 1 year, 3 years, 5 years, and even up to 15 years.

How does the BSE Enhanced Value Index Fund select its stocks?

The BSE Enhanced Value Index Fund selects 30 stocks out of the top 250 companies listed on the BSE based on three value factors: book value to price, earnings to price, and sales to price ratios.

What is the sector allocation of the BSE Enhanced Value Index Fund as of May 2024?

As of May 2024, the sector allocation of the BSE Enhanced Value Index Fund is dominated by Finance at 32%, Oil and Gas at 30%, and Metal Products Mining at 24%, with other sectors like housing-related at 8% and so on.

What are the investment options available for the BSE Enhanced Value Index Fund?

Investors can invest in the BSE Enhanced Value Index Fund through Motilal Oswal's Index Fund and ETF. The video suggests that the Index Fund might be a better option due to liquidity concerns with the ETF.

What is the Nifty Alpha 50 Index and how does it perform compared to Nifty50?

The Nifty Alpha 50 Index is an index that selects the top 50 stocks from the top 300 listed on NSE based on their Alpha factor, which measures the stocks' performance against the market. It has historically provided higher returns than the Nifty50, especially in bull markets.

How is the Nifty 200 Momentum 30 Index constructed?

The Nifty 200 Momentum 30 Index is constructed by selecting the top 30 stocks from the top 200 listed on NSE that have shown the best momentum, which is the absolute price returns divided by the standard deviation.

What are the investment options for the Nifty 200 Momentum 30 Index?

Investors have the option to invest in the Nifty 200 Momentum 30 Index through ETFs and index funds from various providers such as UTI, Motilal, Bandon Kak, and ICICI.

What are the risks associated with investing in high-return index funds like those discussed in the video?

High-return index funds, while potentially offering significant gains, also come with higher risks, especially during bear markets, where they may experience more significant losses compared to broader market indices.

How can investors find more information about the index funds discussed in the video?

Investors can find more information by conducting further analysis, looking into the historical performance data, and considering the liquidity and expense ratios of the ETFs and index funds mentioned in the video.