The Performance Of Exchange Traded Fund And Index Fund With Special Reference To Nippon India Mutual Fund, Calicut

This paper investigates a comparative analysis of the performance of exchange-traded funds (etfs) and index funds over the period from april 1, 2018, to march 31, 2023. The study utilizes a sample comprising two etfs and three index funds, all of which are designed to track the same index, the nifty 50. It estimates the average returns and mean risk levels of these financial instruments, revealing that they produce remarkably similar results. Furthermore, it performs a regression analysis of the returns of both etfs and index funds against the returns of their underlying indices, finding no evidence of excess returns relative to their benchmarks. Lastly, it identifies the primary sources of costs associated with etfs and index funds, demonstrating a significant positive relation between the etfs and their portfolio ratios, a relationship that is only briefly observed in the case of index funds.