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Non-US Investing • Why Indians invest in managed mutual funds vs index funds

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Hello,

I am a green card holder residing in the US, originally from India. I recently visited India and was surprised to see lot of my relatives and friends invested heavily in managed mutual funds, with expense ratios in excess of 1%.

I looked up returns of these managed funds and in all most all of the cases they were doing better than the index (bse500) by 2-4% over the last 5 years.

I was surprised with both the observations.
1. I attributed better returns than the index to big bull run which Indian markets are having in the last 5 years
2. And I attributed lack of index investing to lack of knowledge of individual investors in kind of immature markets.

Do you think my conclusions make sense?
Why don’t you tell us which funds?

P.S. 5 years is a short period of time. Can you look up how they did during since 2006?

Statistics: Posted by Dottie57 — Sun Dec 29, 2024 2:57 pm — Replies 1 — Views 58



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