| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 5 |
NO. 1 |
PAPER 10 |
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PERFORMANCE ANALYSIS OF EXCHANGE TRADED FUNDS IN INDIA |
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| J. Gayathri* and P. Bhuvaneswari** |
| * Lecturer in Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India |
| ** PhD Research Scholar in Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India. |
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| 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. |
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