Skip to main content

Nifty Total Returns Index

Nifty above 14,000 ! Surprised ? The Nifty Total Returns Index, is nothing but Nifty plus the total dividends announced by Nifty companies, which are assumed to be reinvested.

Though not many are interested in dividends and are concerned about only in the rise in share prices, this is a surprise for them. The Total Returns Index is currently above 14,000,  while the Nifty is around 10,300.

nifty total retruns index

What exactly is Total Returns Index?

The total returns includes interest, capital gains and dividends realized over a given period of time.  The TRI will help in giving the right picture of the real alpha, a metric which measures what the fund has earned over and above (or below) what was expected.

What does TRI mean for mutual fund investors?

Currently, majority of fund houses benchmark their equity mutual fund schemes against simple price indices. But  recently, DSP BlackRock announced it would be disclosing the performance of its equity mutual funds with The TRI as the benchmark.

This is a welcome move as far transparency and investment management is concerned. TRI would give the actual picture of what exactly he or she earns from a mutual fund investment.

Sensex Total Returns Index.

There is also Total Returns Index for all the major indices of NSE and BSE 30  as well.  You can also download Historical Total Returns Index data from NSE.

So what does this all mean for a retail investor?

Dividends play an important role in calculating your returns.  Hence, before calculating your stock, index or mutual fund returns, check out how much dividends you have received, to get the exact returns.

Dividends do matter !


Popular posts from this blog

Your Bill Amounts Are Going To Increase From June 1, 2016

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Union Finance Minister, Arun Jaitley, in his budget announcements proposed to impose a cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:

Phone Bills: Your phone bills are going to go up. So, pay a good 15 per cent now on service tax on phone bills.

Restaurant Bills :If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out. Though 0.5 per cent on a single bill may not mean much, frequent diners may end-up paying a lot during the year.

Travelling: You will have to pay more for air travel, as there is a service tax on tour operators and travel agents.

What is Gold ETF - Gold Bees, Reliance Gold,Kotak Gold

What is Gold Bees or Gold ETF?

Gold ETFs are open-ended mutual fund schemes that will invest the money collected from investors in standard gold bullion (0.995 purity). The investors' holding will be denoted in units, which will be listed on a stock exchange.They provide returns that would closely track the returns from physical gold in the spot market.

An investor can buy and redeem the units either directly from the mutual fund or from the stock exchange.Presently there are many Gold ETFs traded in NSE India. Some of the listed Gold ETFs are GoldBees,Reliance Gold,Kotak Gold,UTI Goldshare

Why choose Gold?
Gold holds its own in any investment evaluation on its strengths as a hedge against inflation, value in the event of political uncertainties and its traditionally negative co-relation with other asset classes such as stocks, fixed income securities and commodities.

The value of goods and services that gold can buy has remained stable unlike currencies that have seen significant…


NIFTY BEES - is the first ETF (Exchange Traded Fund) in India, which seeks to provide investment returns that closely correspond to the total returns of securities as represented by the S&P CNX Nifty Index. It gives you the most diversified exposure at lowest possible unit size. Approximately value of Nifty bees will be 1/10th value of the prevailing Nifty price.

ETFs are one of the latest financial innovations and any new concept takes time to be known widely. Globally it took more then five to seven years before it could be of any significant size. In India, it was introduced with Rs 21 crore in size , a fraction of the mutual fund industry, it has come far with more than Rs 700 crore in size with six ETFs.

The Nifty BeES also scores over other index funds due to its low tracking error and expense ratio, apart from easier tradeability as it is listed in the NSE. One can also consider doing an SIP in Nifty BeES.

Some of the reasons to invest in Nifty Bees : Investing in Exchange …