i-manager Publications

Analysis Of Exchange Traded Funds & Mutual Funds

Tamma Koti Reddy*

Associate Professor, Department of Economics, IBS, Hyderabad, AP, India.

Periodicity:December - February'2013
DOI : https://doi.org/10.26634/jmgt.7.3.2112

Abstract

The paper examines mechanism of functioning of Exchange Traded Funds (ETFs) and its growth in India. It also includes identification of potential new ETFs which can be launched to cater the need of Indian investor to effectively diversify their portfolios at minimal cost. To analyze performance characteristics of ETFs and their comparison with Index Mutual Funds, a sample of 6 ETFs tracking different indices and 5 Index Mutual funds tracking the same S&P CNX Nifty Index, was studies based on past 3 years daily data. Performance characteristic like tracking error was calculated by three methods. Average per centage yearly return was also calculated. Findings and conclusions show that ETFs are better in tracking their respective benchmarks as compared to Index Mutual Funds.

Keywords

Exchange Traded Funds, Index Mutual Funds,Hedge Funds,Market Indices, Tracking Error Analysis, Systematic Risk.

How to Cite this Article?

Tamma Koti Reddy (2013). Analysis of Exchange Traded Funds & Mutual Funds. i-manager’s Journal on Management, 7(3), 12-25. https://doi.org/10.26634/jmgt.7.3.2112

References

[1]. Deville, L. (2008). Exchange Traded Funds: History, Trading and Research. In C. Zopounidis, M. Doumpos, & P. Pardalos, Handbook of Financial Engineering (pp. 1-37).

[2]. Gallagher, D. R., & Segara, R. (2004). The performance and trading characteristics of exchange-traded. Retrieved from http://wwwdocs.fce.unsw.edu.au/ banking/workpap/wp%2011%202004.pdf.

[3]. Gupta, A. (2002). Mutual Funds In India-A Study Of Investment Management. Anmol Publications Pvt. Ltd.

[4]. Gupta, G., Panwar, S., & Gupta, A. (2009). Investment Performance Of Mutual Fund Income. Maimt Journal.

[5]. Haslem, J.A. (2003). Mutual Funds. John Wiley & Sons, Inc.

[6]. Indian Mutual Funds Handbook (2nd Edition ed.). (2008). Orient Paperbacks, India.

[7]. Kamiyama, T. (2012). Social Science Research Network. Retrieved from http://papers.ssrn.com/ paper.taf?abstract_id=1103758.

[8]. Kayali, M.M. (2007). Pricing Efficiency of Exchange Traded Funds in Turkey: Early Evidence from the Dow Jones Istanbul 20. International Research Journal of Finance and Economics (10), 18-22.

[9]. Kothari, S.P., & Warner, J.B. (n.d.). Socal Science Research Network. Retrieved from http://papers.ssrn.com/ paper.taf?abstract_id=75871.

[10]. Lin, A., & Chou, A. (2006). The Tracking Error and Premium/Discount of Taiwan's First Exchange Traded Fund. Web Journal of Chinese Management Review, 9 (3), 6.

[11]. Panwar, S., & Madhumathi, D.R. (2011). Social Science Research Network. Retrieved from http://papers.ssrn.com/paper.taf?abstract_id=876402.

[12]. Rajeswari, M. T., & Moorthy, P. V. (2012). Retrieved from www.utiicm.com/Cmc/PDFs/2001/rajeswari.pdf.

[13]. Rao, D.S., & Ravindran, M. (2011). Social Science Research Network. Retrieved from http://papers.ssrn.com/ paper.taf?abstract_id=433100.

[14]. Rompotis, G.G. (2008). Performance and Trading Characteristics of German Passively Managed ETFs. International Research Journal of Finance and Economics (15), 220-222.

[15]. Rompotis, G.G. (n.d.). Social Science Research Network. Retrieved from http://papers.ssrn.com/ paper.taf?abstract_id=905770.

[16]. Sharpe, W. F. (1994). The Sharpe Ratio. The Journal of Portfolio Management, 1-19.

[17]. Sondhi, H.J., & Jain, P.K. (2006). Financial Performance Of Equity Mutual Funds In India. ICFAI University Press.

[18]. Poterba, J.M., & Shoven, J.B.(n.d.). Exchange Traded Funds: A New Investment Option for Taxable Investors. Retrieved from Social Science research Network: http://papers.ssrn.com/paper.taf?abstract_id=302889.

	North Americas,UK, Middle East,Europe		India	Rest of world
	USD	EUR	INR	USD-ROW
Pdf	35	35	200	20
Online	35	35	200	15
Pdf & Online	35	35	400	25

Analysis Of Exchange Traded Funds & Mutual Funds

Abstract

Keywords

How to Cite this Article?

References

If you have access to this article please login to view the article or kindly login to purchase the article

Purchase Instant Access

Options for accessing this content: