THE ACCEPTANCE OF CONCEPT OF INDEX FUND IN THE INDIAN MARKET

Abstract

The conducted survey is a part of the MBA Course curriculum at Delhi School of Management, Delhi Technological University. The objective of this study is to assess the user’s acceptance and perception towards the concept of ‘Index Funding’. Index funds are a relatively small part of the overall mutual fund industry in India, and this is markedly different from the west, where index funds do quite well, and in fact the biggest fund in the US is an index fund (SPY) that tracks the popular S&P 500 index. One of the reasons could be lack of awareness and hence the popularity since the actively managed funds have performed better than index funds in the past and people expect that to continue in the future as well. Another could be the difference in the returns obtained from an actively managed fund and a passively managed index fund.