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

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