Journal Press India^®

Author Details ( * ) denotes Corresponding author

There are lots of investment avenues available today in the financial market for an investor with an investable surplus. One can invest in bank deposit, corporate debenture and bonds where there is a low risk but low return. One may invest in Stock of companies where the risk is high and the return are also proportionately high. Exchange Traded Fund (ETF) and Mutual fund (MF),both are investment avenues having more similarities and fewer differences in their Fund’s nature. Study of risk and return of securities is very important for an investor to make investment. The present article studies the performance evaluation of these two funds. It also focuses on the suitable investment option to be preferred by an investor by comparing both the funds. The findings at the end states that the performance largely depends upon individual fund scheme. To be more precise, it is inferred that both the asset class can generate higher return but ETFs are better than MF because it involves less cost than latter.

Keywords

ETF; Mutual Fund; Risk; Return; Correlation of Coefficient; Beta

1. Websites : 
     www.amfiindia.com, www.nseindia.com
2. Books:
    a. Security Analysis and Portfolio Management by Prasanna Chandra
    b. Security Analysis and Portfolio Management by Punithavathi Pandya