What is Tracking Error?
Tracking Error — How closely an index fund or ETF follows its benchmark — a lower tracking error means tighter replication.
In simple terms
A good index fund has a low tracking error versus the Nifty 50.
Why Tracking Error matters when you invest
Understanding tracking error helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Tracking Error — frequently asked questions
What is Tracking Error?
How closely an index fund or ETF follows its benchmark — a lower tracking error means tighter replication.
What does Tracking Error mean in the stock market?
How closely an index fund or ETF follows its benchmark — a lower tracking error means tighter replication. A good index fund has a low tracking error versus the Nifty 50.
Can you give an example of Tracking Error?
A good index fund has a low tracking error versus the Nifty 50.
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