NRI Investment in Mutual Funds
Diversification India dedicated ETFs invest primarily in ADRs or GDRs, of Indian companies. Since the number of Indian companies with these GDR and ADR offerings are limited, ADR (12 Indian companies) and GDR (<> Therefore, the portfolio lacks diversification and tends to be concentrated with a limited basket of stocks Dividend Reinvestment Option Indian mutual funds generally provide an option for dividend to be reinvested in the fund without charging any entry load unlike India dedicated ETFs where dividends declared are not allowed to be reinvested directly Units Allotted Investors can hold units up to four decimal places (i.e. fraction of shares) in case of Indian mutual funds unlike India dedicated ETFs where these are sold in whole shares.Introduction
Limitations in India Dedicated ETFs
Performance of India Dedicated ETFs Compared with Indian Mutual Funds