Monday, March 26, 2007

Index Funds Outsmart Fund Managers

Another fact which makes me champion ETFs:

Returns generated by actively managed equity funds will close the year with a growth of around 10%. While the Index funds or ETFs have offered a growth of 19.57 % for the same period. (Source: ValueResearch)

So why do we pay for the extra fund management charges by around 2%?

The major reason for ETFs not being popular is that the agent does not want to sell a product where he is not getting a good commission.

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