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06 October 2008, 08:57   Report Abuse

YOgesh Gupta


[ Scorecard : 23]

What are the index fund available in india ?

How does their retrun compare with the sensex ?

11 October 2008, 23:52  

Sakyasingha Ratho


[ Scorecard : 24]

Mr Yogesh,

                     If you want to know the index funds available in India, well you may go to the AMFI website where you can get all the Index funds of the registered fund houses of India.

                    Now as per rules they have to take a benchmark as their reference with which the returns can be compared viz. SENSEX, BSE-200, BSE-500, NIFTY indices. They have to distribute their wealths in the same proportion of weightages to each stock in the benchmark index.

Here the main goal of the fund manager is to track the index as far as possible. But in tracking also there remains errors which is called TRACKING ERROR. If the fund appreciates as the index then it is a good fund otherwise there is mismanagement of the fund. This type of investment is called Passive Investment. Here the fund management fee is very less or zero.

 There are also some performance ratios by which this fund's performance is measured. Here you may test the performance with the Information Ratio, its turnover etc. This fund also has to do required changes in the investment patterns as per the changes in the Benchmark.

Hope you got your answer.  Bye

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