Abstract:
An index fund is an investment vehicle which aims to mimic performance of the select market index by constructing a portfolio which replicates the market index portfolio. This paper examines the performance of select index mutual funds in India based on tracking error and Jensen's alpha, and rank these funds based on their performance. The study reveals that Franklin India index fund has a lower tracking error followed by Birla Sun Life index fund. Rankings using Sharpe and Treynor's ratio reveal that Franklin India index fund and SBI Nifty index fund respectively are the best performing funds from the selected index funds.
