Index mutual funds (MFs) and exchange traded funds (ETFs) are great products, at least theoretically. But can the same thing be said at a practical level? Are enough retail investors getting around to investing in these funds?An index MF tries to mirror a broader stock market index by investing in stocks that constitute that index in the same proportion as the weightage of the specific stocks in that index. Given this, the returns on such funds are closer to the overall return of the broader market index. Further, an ETF is an index fund that can be bought and sold on a stock exchange.
