Investors compare expense ratios, but actual investor experience depends on tracking quality and execution costs too.
Key Takeaway
The best index fund is often the one with consistently low tracking difference, not simply the one with the lowest headline TER.
Metrics That Matter
Tracking difference (fund return minus index return) over multiple periods should be consistently tight.
- 3-year tracking difference trend
- Fund size and liquidity profile
- Portfolio turnover and replication method
Simple Selection Process
Shortlist 3 funds in the same index category, compare rolling tracking difference, then choose one and stay consistent.
Free Calculators — Try It Yourself
Disclaimer: Read scheme documents and risk factors before investing.
