Currently, most mutual funds use the price return variant of the index, or price return index (PRI) for benchmarking performance. Currently, most mutual funds use the price return variant of the index, or price return index (PRI) for benchmarking performance. Certain reports have also insinuated that exchange-traded funds (ETFs) might turn more attractive than mutual funds. However, management fees charged by actively managed mutual funds are around 2% higher than those charged by passively managed ETFs. Overall, mutual funds remain a more attractive investment than ETFs, but the actual returns depend on whether an investor is able to consistently select and invest in high-performing mutual funds.

Source: Mint January 16, 2018 02:26 UTC