In what may come as a surprise to some U.S. investors, their Indian counterparts have preferred high-priced actively managed mutual funds. Morningstar India told the Business Standard that fees on actively managed mutual funds in India can range from 1.5% to 2%, or 80 basis points in excess of many ETFs there.
Only recently have Indian investors begun to examine the advantages of lower-fee ETFs, a lesson learned by many investors in the U.S. and that could spell opportunity for ETF issuers in India going forward.
According to the Investment Company Institute, actively managed equity funds charge an average 0.89% expense ratio as of 2013. In comparison, traditional beta-index ETFs have an average 0.58% expense ratio, with some charging as little as 0.04%, according to XTF data.
WisdomTree India Earnings Fund
