Özet:

Mutual funds are emerging as an attractive investment option. MFs are successful especially in channelizing and mobilizing the savings of many retail investors into the investment in various equity and debt instruments. Mutual fund investment is considered as less risky than investing directly in stocks as experienced fund managers take delicate investment decisions and is therefore definitely a safer option for inexperienced risk averse investors.   An Exchange Traditional Fund (ETF) is defined as an instrument to gather money from prospective investors, with a promise that the money would be invested in a specific predefined manner and methodology This paper studies performance of ETFs and presents an exchange traditional fund (ETF) as an investment avenue for passive wealth creation. Investment in ETFs picking up since last decade. Awareness level of investors is increasing   The analysis and interpretation from study presents that tracking error is higher for ETFs as compared to index funds. The active returns analysis by presenting two ETFs reveals that ETFs always fared better than their underlying index while the index funds sometimes underperformed   and sometimes outperformed the underlying index. Transaction fees and charges are higher in Index funds as compared to ETFs.   Suitable strategies and important aspects for sound investment decision making are also discussed in the paper.

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