scholarly journals Evaluation of Growth of Mutual Funds and Exchange Traded Funds in India

2016 ◽  
Vol 7 (1) ◽  
pp. 41
Author(s):  
R. Venkataraman ◽  
Thilak Venkatesan
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Lower Risk ◽  
Lower Cost ◽  
Tracking Error ◽  
Secondary Data ◽  
Exchange Traded Funds ◽  
Fund Manager ◽  
Risk Return ◽  
Exchange Traded Fund

Investors are always baffled about the risk-return characteristics of their investments. There is often the challenge of the alternative between active&passive investments. In case of active mutual funds there are numerous categories of active funds each tracking a different benchmark. It often leads to confusion about how the performance can be compared between one fund to another. The growth of ETFs' has been phenomenal in the recent years due to various advantages of an exchange traded fund compared to the mutual fund as lower cost of management, lesser dependence on fund manager, ease of transaction to name a few. In this context the research analysedthe passive ETF's&prominent Mutual funds both active and passive to justify superior returns at lower risk. The research was based on secondary data, for a period of 5 years i.e. from 2010 to 2015.The various tools used were Sharpe Ratio, Jenson's Alpha, Treynor's Ratio and Tracking error. The study recommends fund houses to implement proactive strategies to reduce tracking error and make ETF's a better alternative for investment.

scholarly journals Can Expense Ratios Signal Performance? An Analysis of Equity ETFs & Mutual Funds

2020 ◽  
Vol 16 (4) ◽  
pp. 23-40
Author(s):  
James Gamble
Keyword(s):  
Mutual Funds ◽  
Portfolio Management ◽  
Mutual Fund ◽  
Exchange Traded Funds ◽  
Fee Structure ◽  
Downward Pressure ◽  
Potential Risks ◽  
Exchange Traded Fund ◽  
The Impact ◽  
Managed Funds

This study examines the impact of the emergence of exchange-traded funds (ETFs) as an alternative investment vehicle to mutual funds. As the number of ETFs continues to rise, we investigate potential risks and disadvantages posed by ETFs in comparison to traditional mutual funds. ­We compare the returns, performance, and expense ratios of ETFs to those of mutual funds. We find that expense ratios are positively correlated with actively managed mutual fund returns and that passive funds have outperformed active funds since their inception. There is downward pressure on mutual fund fees over time, suggesting increased competition between mutual funds and ETFs. We also find, up to a certain threshold, actively managed funds are worth their costs. KEYWORDS: Exchange-Traded Fund (ETF); Mutual Fund; Investing; Fee Structure; Expense Ratio; Passive (Active) Investing; Portfolio Management; Indexing

scholarly journals A Research on Risk Return Analysis of Selected Growth Option Mutual Fund Schemes in India

2019 ◽  
Vol 8 (12S) ◽  
pp. 545-551
Keyword(s):  
Mutual Funds ◽  
Asset Management ◽  
Mutual Fund ◽  
Research Study ◽  
Secondary Data ◽  
Risk Return ◽  
Growth Option ◽  
Equity Mutual Funds ◽  
Public Risk ◽  
Basic Features

Mutual funds are one of the best intermediaries in capital markets to mobilize funds from general public. Risk and return are the basic features of mutual fund. The present study evaluates and compares the performance of 26 large-cap equity schemes of five Asset Management Companies (Franklin Mutual Fund, India bulls Mutual Fund, UTI Mutual Fund, SBI Mutual fund, Axis Mutual fund). The period of the study is 5 years from 2013 to 2018. Benchmark index is BSE 100 index has been collected from www.bseindia.com. The research study has analyzed the performance of Large-Cap Equity Mutual Funds of Select Asset Management Companies and to compare the performance of Large-Cap Equity Mutual Funds of Select Asset management Companies. The methodology of the present study includes sampling, data collection and data analysis tools used for the study. The present research study is based on purely secondary data. The NAV data has been obtained from Association of Mutual funds of India (AMFI) website and other secondary data obtained from books, journals and respective mutual fund websites. In this research study, financial tools Sharpe Index, Treynor’s Index and Jensen Alpha etc., are applied for processing the data to give reliable conclusion.

scholarly journals Exchange Traded Funds (ETF): history, mechanism, academic literature review and research perspectives

2016 ◽  
Vol 10 (2) ◽  
pp. 89-108 ◽  
Author(s):  
Evgeni Tarassov
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Research University ◽  
Stock Exchanges ◽  
Exchange Traded Funds ◽  
Index Funds ◽  
Research Perspectives ◽  
History Of ◽  
New Generation ◽  
Exchange Traded Fund

Evgeny Borisovich Tarasov - National Research University "Higher School of Economics". E-mail: [email protected] Prior to March of 2016, when the first exchange traded fund (ETF) on RTS was introduced, Russian investors’ only option for investing in the domestic index was through a mutual fund. By contrast, the majority world stock exchanges have been giving their clients the option to invest in their leading domestic indexes not only via index mutual funds but also via exchange traded funds (ETF) since decades. Their absence and therefore the lake of familiarity with these funds might be one of the several reasons Russian investors have been willing to pay a premium for ETF investments through intermediaries relative to what they would pay investing directly. Large number of investors buy western ETF via mutual funds. The premiums Russian mutual funds charge for investing in ETFs translate on up to a 36% premium over a 10-year horizon, compared to buying the same ETF directly. This paper introduces to a broader Russian speaking community ETFs, one of the most important financial innovations of the last 20 years, and provides a survey of the research done in this field. This paper reviews the literature on ETFs and provides a brief history of ETFs and these funds’ investment mechanism. In conclusion, some ideas for further research are suggested.The existing paper are divvied in three groups that unite six topics:The first group of literature is devoted to traditional ETF. There are two topics:1. Is the ETF substitute for index mutual funds? If yes, to which level? If it is substitute, why it did not still the index funds?2. Which influence has the introduction of an ETF on the active that it tracks. This topic covers also liquidity, hedge and arbitrage. Second group of papers emerging recently unites the following topics:3. How effective are the ETF tracking the foreign indexes?4. ETF development besides USA. 5. ETF that track not the share indexes. New generation ETF: synthetic, leveraged, actively managed and smart-beta.Third group of papers devoted to the following topic:6. ETF use for optimal portfolio construction.

scholarly journals FACTORS INFLUENCING THE INVESTORS TO INVEST IN MUTUAL FUNDS: AN EMPIRICAL ANALYSIS

2020 ◽  
Vol 6 (9) ◽  
pp. 45-52
Author(s):  
Bishwajit Rout ◽  
Sangeeta Mohanty
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Exchange Traded Funds ◽  
Equity Fund ◽  
Index Funds ◽  
Money Market Funds ◽  
Wide Range ◽  
Different Types ◽  
Fund Industry ◽  
Mutual Fund Industry

Indian mutual fund industry started with traditional products like equity fund, debt fund and balanced fund and later significantly increased it’s product base. Today, the industry has introduced a wide range of products such as money market funds, sector specific funds, index funds, gilt funds, insurance linked funds, exchange traded funds, and marching towards reality funds. The different types of schemes offered by the Indian mutual fund industry provide several options of investment to common man. What is noteworthy is that bulk of the mobilization has been by the private sector mutual funds rather than bank sponsored mutual funds. Through this paper the author has attempted to focus on the the factors that motivate the investors to invest in mutual funds.

Selecting Mutual Funds for Retirement Accounts (A)

2018 ◽  
pp. 1-17
Author(s):  
Phillip A. Braun
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
First Year ◽  
Retirement Savings ◽  
Defined Contribution ◽  
Management Turnover ◽  
Risk Return ◽  
Retirement Plan ◽  
Retirement Accounts ◽  
Northwestern University

Alice Monroe, a 30-year-old married mother of two, was an admissions officer at the Kellogg School of Management at Northwestern University. She was just completing her first year of service at Northwestern and qualified for the university's 403(b) retirement plan. It was early October 2017, and she had until the end of the month to decide if and to what extent she would participate in Northwestern's retirement plan–that is, how much of her salary should she put into the retirement plan, and into which mutual fund or funds should she allocate her savings? The case includes background on defined contribution and benefit plans as well as mutual funds. It goes into detail about Northwestern's retirement plan, including data on the performance of 15 of the plan's core mutual funds. The case also provides each fund's strategy, Morningstar Rating and Morningstar Category, expense ratio, assets under management, turnover rate, and historical performance for the last 10 years. Using modern portfolio theory (diversification and risk-return trade-off) and with an understanding of mutual fund fees and the tax advantages of retirement savings, students will decide how much Alice should invest and in which mutual funds.

An Empirical Study on the Performance of Select Large Cap Equity Mutual Funds in India

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
Samyabrata Das
Keyword(s):  
Mutual Funds ◽  
Asset Management ◽  
Mutual Fund ◽  
Human Element ◽  
Risk Return ◽  
Equity Mutual Funds ◽  
Equity Funds ◽  
Managed Funds ◽  
Opening Up ◽  
Fund Return

Since the opening up of the economy in the early 1990s, Indian mutual fund industry has witnessed fabulous quantitative growth. Funds which invest a larger proportion of their corpus in companies with large market capitalization are called large cap funds. Actively managed funds make use of a human element, such as a single manager, comanagers or a team of managers, to actively manage a fund's portfolio. The main objective of the study is to analyse the performance of select actively managed large cap equity funds in the line of risk-return parameters. This study is based on fourteen funds from twelve Asset Management Companies. All the funds are ranked under seven performance measures, namely, fund return, fund standard deviation, Sharpe Ratio, Treynor Ratio, return from systematic investment plan (SIP), Jensen Alpha, and RSQ, for five different time periods of 1-year, 3-year, 5-year, 7-year, and 10-year.

Tracking Efficiency of Exchange Traded Funds (ETFs)

Paradigm ◽  
2016 ◽  
Vol 20 (2) ◽  
pp. 176-190 ◽  
Author(s):  
Jaspal Singh ◽  
Prabhdeep Kaur
Keyword(s):  
Regression Analysis ◽  
Present Article ◽  
Mutual Fund ◽  
Negative Impact ◽  
Tracking Error ◽  
Evaluation Criteria ◽  
Panel Regression ◽  
Exchange Traded Funds ◽  
Tracking Ability ◽  
Managed Funds

Exchange traded funds (ETFs) have emerged as a new investment vehicle in the mutual fund industry providing investors with the ability to trade the entire market through a single transaction executed at the exchange. Using a sample of 12 equity ETFs from 1 April 2011 to 31 March 2015, the present article attempts to examine the performance efficiency of ETFs in India and explore factors that drive the performance of ETFs away from their target indices. The study reveals that ETFs exhibit significant tracking error while trying to replicate the returns of their benchmark indices. The results of panel regression analysis further reveal that the assets under management and volume positively affected the tracking ability of ETFs whereas volatility is reported to have negative impact on the tracking efficiency of ETFs. The results will have important implications for investors, managers as well as for the evaluation criteria involved in assessing the performance of actively managed funds.

scholarly journals PENGUKURAN KINERJA REKSADANA SAHAM TERHADAP HARGA KOMODITAS MENGGUNAKAN BESARAN ALPHA JENSEN DAN CAPM

Media Ekonomi ◽  
2019 ◽  
Vol 26 (2) ◽  
pp. 103
Author(s):  
Robinsyah Anggalis Prasetiyo
Keyword(s):  
Crude Oil ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Time Series Data ◽  
Stock Exchange ◽  
Secondary Data ◽  
Poor Performance ◽  
Series Data ◽  
Equity Funds ◽  
Research Period

<em><em>This study aims to analyze the stock mutual funds that have the best performance and provide an overview to investors about stock mutual funds can be bought by investors. </em></em><em><em>The research methodology used is a quantitative method with the type of time series data and data sources derived from secondary data obtained from the Indonesia Stock Exchange. The research period from 2012 to 2016. Data analysis techniques used are using the Jensen model which explains that the performance of Mutual Funds can be seen from the amount of alpha of each Mutual Fund with the provisions that if a Mutual Fund has a positive alpha means it has good performance, vice versa Funds with negative alpha indicate poor performance. </em></em><em>The results of this study indicate that the performance of Coal, Gold, Nickel and Crude Oil on Equity Funds that manage Capital, Kapital Plus, and Consumption Plus mutual funds products based on the Jensen method each produces insignificant alpha and Jensen alpha values. This means that the performance of mutual funds Kapital, Kapital Plus, and Consumption Plus are not affected by the ups and downs of prices of Coal, Gold, Nickel and Crude Oil.</em>

scholarly journals Performance Comparison of Islamic Mutual Funds with Conventional Mutual Funds

2019 ◽  
Vol 3 (1) ◽  
pp. 38-54
Author(s):  
Moch. Amin
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Secondary Data ◽  
Fund Performance ◽  
Statistical Test ◽  
Performance Comparison ◽  
T Test ◽  
Mutual Fund Performance ◽  
Analysis Method ◽  
Report Data

The purpose of this study is to determine whether or not there is a difference in mutual fund performance between sharia mutual funds and conventional mutual funds from 2016 to 2018. The data used is secondary data in the form of NVA report data of 34 mutual funds consisting of 16 sharia mutual funds and 18 conventional mutual funds. The data analysis method used is the Jensen Index, Sharpe index, Treynor Index, MM Index, and TT Index methods and uses the t-test to see whether there are differences in mutual fund performance. The results of this study conclude that quantitatively there is no difference in mutual fund performance between sharia mutual funds and conventional mutual funds. Likewise, the statistical test with the t-test shows that there is no difference in performance in terms of the Jensen Index, Sharpe index, Treynor Index, MM Index, and TT Index.

scholarly journals Exchange-traded funds as an alternative investment option

2019 ◽  
pp. 7-37
Author(s):  
António Afonso ◽  
Pedro Cardoso
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Exchange Traded Funds ◽  
Price Efficiency ◽  
Index Funds ◽  
Equity Mutual Funds ◽  
Asset Value ◽  
Net Asset Value ◽  
Tracking Ability ◽  
Investment Option

We conduct an analysis of Exchange-traded Funds (ETFs), Index and Equity mutual funds and their respective benchmark during the 2010-2015 period for the Portuguese fund industry. For the period 2010-2017, we test ETFs for price inefficiency (existence of deviations between prices and the Net Asset Value) and persistence. We find that the studied ETF does not always outperform index funds in replicating the variations of the PSI 20 index, despite exhibiting better tracking ability when facing downside deviations of the benchmark and a better capacity of smoothing tracking deviations. Regarding ETFs price efficiency and its persistence, the study reveals that the examined ETF is priced at a low average discount with evidence of deviations persistence of at least two days. The investment schemes with the highest ability to track the PSI 20 Index were PSI20 (ETF), BBVA PPA Índice PSI20, and the equity mutual fund BPI Portugal.

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