1Lecturer in Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India
2PhD Research Scholar in Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India
Online published on 7 September, 2015.
Mutual Funds are the diversified portfolio investment vehicle that collects the funds of investors and invests them in different types of financial instruments. Exchange Traded Funds are an innovation in traditional mutual funds and they represent a basket of securities that are traded on an exchange. There are a large number of previous studies to analyse the performance of mutual funds but the performance of ETFs were not covered. Hence this paper attempts to examine the performance of ETFs listed in NSE in the last three years i.e., 2005 to 2007 by comparing the returns and risk of ETFs with the returns and risk of the index. For this purpose, Sharpe ratio and Treynor ratio were used. The results show that general NIFTY BeES provided better returns than other option based funds like Junior BeES, Liquid BeES and Bank BeES during the selected study period.
