Key Points
Arun Sundaresan, Head-ETF, Nippon Life India Asset Management, says generally, most of these ETFs anyway tend to be low on expense and they may be comparable but the moot point here is that you should not be guided only by the expense ratio..
If the liquidity is poor and if the impact cost is very high, that may defeat the entire purpose of low-cost investing through ETFs...
ETFs are seeing substantial numbers as far as the performance across the board are concerned, especially the volumes..
Arun Sundaresan: Obviously ETFs and index funds, passive funds as they are called, have been picking up significant traction over a period of time in the mutual fund industry..
Some well-established ETFs like ours, for example, which have been around since 2001, are quite popular, leading to higher volumes and higher liquidity, which in turn has a lot of direct implications for investors..
