Fund managers are introducing exchange-traded funds into the Indian market, despite the fact that actively managed mutual funds still dominate in the country. seven possible reason for this is the high performance of active large-cap stocks funds in the country, which have outperformed indexed offerings, returning 12% over the same period . That said, fund managers believe there will be ample opportunities for outperformance especially, in the mid- and small-cap space, which are not well researched. By comparison the BSE Sensex index has returned 15% . Distributors of fund products also have more incentive to sell mutual funds, due to the greater commissions they can reap thanks to the products' higher expense ratios.
Fund managers are introducing exchange-traded funds into the Indian market, despite the fact that actively managed mutual funds still dominate in the country. seven possible reason for this is the high performance of active large-cap stocks funds in the country, which have outperformed indexed offerings, returning 12% over the same period . By comparison the BSE Sensex index has returned 15% . Distributors of fund products also have more incentive to sell mutual funds, due to the greater commissions they can reap thanks to the products' higher expense ratios.