Department of Commerce, Osmania University, Hyderabad, Andhra Pradesh, India
Online published on 12 May, 2015.
Mutual Fund is a trust that pools money from a group of investors sharing common financial goals and invest the money thus collected into asset classes that match the stated investment objectives of the scheme. Exchange Traded Funds (ETFs) are Mutual Funds which can be bought and sold in the stock market, just like any other stocks or shares. As far as an investment is concerned, an Exchange Traded Fund is just like a Mutual Fund and as far as trading is concerned, an Exchange Traded Fund is just like a stock or equity which can be traded on Stock Exchanges like NSE.
The study is based on secondary data covering a period of 13 years i.e. 2001 to 2013 to reflect upon the growth of Exchange Traded Funds over a period of time since their inception.
The parameters for evaluating the performance are Net Asset Value, Return, Risk, Reward to Variability (Sharpe) and Treynors Performance Evaluation Ratio. The statistical tools like Standard Deviation, Beta, Sharpe Ratio, and Treynors Ratio are used for data analysis.
MF-Mutual Funds, ETFs-Exchange Traded Funds, IFs-Index Funds, NAV-Net Assets Value
