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Nifty vs Mutual Funds: What Gives Better Returns?
Compare direct index investing with actively managed mutual funds.

Comparing Investment Avenues

  • Past 5-10 Year Returns Comparison

    Review historical performance of Nifty 50 index funds/ETFs versus a basket of diversified actively managed large-cap mutual funds. (Note: Past performance is not indicative of future results).

  • Cost Difference (TER, Expense Ratios)

    Index funds/ETFs typically have very low Total Expense Ratios (TER). Actively managed funds have higher TERs due to fund management costs. This difference impacts net returns.

  • Risk-Adjusted Return (Sharpe Ratio, Alpha)

    Consider not just absolute returns, but returns relative to risk taken. Actively managed funds aim to generate 'alpha' (excess returns over benchmark), but many fail to do so consistently after costs.

  • When to Prefer MFs over ETFs (or Vice-Versa)

    Index ETFs are great for low-cost, market-matching returns. Actively managed MFs *might* outperform if the fund manager is skilled, especially in less efficient market segments (e.g., small-cap), but this is not guaranteed. Consider your investment knowledge and belief in active management.