Performance Evaluation Of Index Funds And Etfs

Abstract

This study tries to find out and analyze the performance of 147 passive Mutual Fund schemes (index and ETFs funds) following the same benchmark index. The performance of the selected mutual fund schemes are analyzed on the basis of data available in the AMFI website. It includes data from 2006 to 2022. This study uses the differential return and its standard deviation, excess return against benchmark. 96 index funds and 51 ETFs funds and their corresponding benchmark index data  are taken for study. This study will give the investors the clear idea as to invest in which passive funds. This study uses the single index model to get the value of alpha, beta and R squared. The mean and the standard deviation are calculated from the differential return. From this, the researcher will able to get the best performing passive funds. This study is useful for the investors and help them to invest in different passive mutual funds. The result suggest that Index funds performs better in gross as well as net return than the ETFs.