Mutual funds vs ETFs is a debate going all over the world especially in the United States. In this post, we have a look at mutual fund vs etf performance, performance and how to chose one over the other.
In last few years actively managed mutual funds have not been able to outperform passive index funds. This has called into question high fee mutual funds charge. Current mutual fund fee in United states is about 1
Exchange traded funds though globally very popular have not been very popular in India.Key reasons include their relative underperformance as compared to mutual funds, and unlike lack of distance unlike the US no special tax incentive for investors.General lack of width of good ETFs has also contributed to luke warm growth. With the launch of CPSE exchange and followed by CPSE ETF.There is a renewed push for investors to invest in ETFs.
CPSE Index is