Performance of Exchange Traded Funds in India

Binu C Kurian

Abstract: ETF are hybrid type of mutual fund which can be traded as share or stock on the exchange. Exchangw Traded Funds are one of the most preferred investment vehicle in the matured markets like USA, UK, Japan, Germanyetc. Exchange Traded Funds were launched first in USA in 1993 and December 2001 in India. But so far it is not a popular investment in India. The reason why ETFs are not popular in India are lack of product variability in the ETFs. The market of ETfs in India has lack of liquidity and product knowledge about the product in the general public and with big shots such as Foreign Institutional Investors, Domestic Financial Institutions and High Net worth individuals. Keywords: ETFs Exchange Traded Funds, matured markets, product variability, liquidity, Foreign Institutional Investors

Keywords: ETF