In our previous two posts replicated below, we had mentioned reasons why PL Vested, PL’s unique commission free investing platform for Prabhudas Lilladher clients, makes immense sense as a gateway to both diversification as well as participation in a global rally, which is likely to start from the US – if and when it starts! And investing , whether lumpsum or systematically, via S&P500 makes immense sense.
Why Invest in Vanguard S&P 500 ETF via PL Vested
Vanguard has operated this ETF for decades now on the principles of John Bogle – the master of markets! The ETF boasts of probably the lowest tracking error and expense ratios on the planet and no other ETF can possibly match it. No wonder then that Warren Buffet himself has recommended the Vanguard’s S&P 500 index fund by name! Read https://www.fool.com/investing/2020/02/20/warren-buffett-just-took-some-of-his-own-advice-an.aspx
Advantages of investing via Vanguard + PL Vested (versus Indian AMC ETFs)
1) VOO, Vanguard’s S&P 500 ETF, is rated globally as the best overall ETF
2) Expense ratio of just 0.03%, versus 0.5% to 1% index ETFs annualized charge- Huge saving per annum !
3) Long term Taxation on 24 Months versus treatment as debt funds (3 years for Long Term) for locally sponsored ETFs
4) No Minimum Investment Amount – Buy fractional shares!
5) Lower tracking error unlike other ETFs which can make a substantial difference to long term returns- imagine saving 1%-2%, which is typical tracking error on ETFs in India, per annum for a 10 year period!
Why S&P500 ETF
- The S&P 500 has given returns of 12.7% and 17.8% CAGR in rupee terms over the past five and 10 years respectively (as of 19 March, 2020). This compares favourably against the 6.3% and 9.6% delivered by the Nifty 50.
- Low correlation to Nifty (less than 0.14%) so diversification potential is large
- The S&P 500 index contains stocks of the 500 leading companies in the US, including Apple, Amazon.com, Berkshire Hathaway, Facebook, Alphabet, Johnson & Johnson, JPMorgan Chase, Microsoft and Procter & Gamble.
- S&P 500 has a track record of 63 years and consists purely of large-caps.
Why use PL Vested
- Easy 5 minute KYC onboarding process for existing PL Clients at https://pl.vested.co.in
- Zero Commissions and Zero Account Opening Charges
- Digital process for RBI Liberalised Remittance Scheme (LRS) making it completely convenient
- Online guidance by PL Vested teams 24 x 7
Contact your relationship manager to open your PL Vested Account for free or email us at email@example.com
Alternatively, do visit https://pl.vested.co.in to start your account opening process rightaway!
Read more about US Investing at :