The IUP Journal of Accounting Research and Audit Practices:
A Note on the Performance of Index Funds and Mutual Funds: India Versus US

Article Details
Pub. Date : Oct, 2020
Product Name : The IUP Journal of Accounting Research and Audit Practices
Product Type : Article
Product Code : IJARAP21020
Author Name : Rahul Bhatia, Bhanu Sireesha
Availability : YES
Subject/Domain : Finance
Download Format : PDF Format
No. of Pages : 6

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Abstract

For long, it has been an on-going discussion among investors, statisticians, fund managers, traders, etc. as to whether index funds are outperforming mutual funds or not. Index funds are passively managed and mutual funds are actively managed. The statistics shows that India behaves differently compared to US in this matter.


Description

A mutual fund is a financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments and other assets. Mutual funds are operated by professional money managers, who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.


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