Assistant Professor, Sasi Creative School of Business, Coimbatore
Online published on 13 February, 2014.
Mutual funds as an investment vehicle have gained immense popularity in current scenario, which is clearly reflected in the robust growth levels of assets under management. However, despite this robust growth still the penetration level in India are low when compared with the global companies. Emergence of Stock Exchange platforms is seen as a suitable means to increase penetration levels of financial assets and thus mutual funds. The ETFs are based on the stocks that reflect the composition of an index, like S&P CNX Nifty or Sensex, it is just like a equity which trades on the exchanges. There are about 19 ETFs and 14 Gold ETFs traded in India, out of which 7 funds were selected for the study. Investment performance, risk and stock selection ability of these funds are analyzed. The empirical results of ETFs reflect about the efficiency of the fund performance over and above the market returns, it reflects the risk involved in ETFs and shows the stock selection ability of the fund manager.
