We ask whether a portfolio of large-cap mutual funds in India generates any diversification benefits as compared to holding a single large-cap index tracking exchange-traded fund. Using a mix of traditional measures like correlation and covariance of excess returns, and measures like tracking...

This paper examines the evidence of the benefits of international diversification in the Indian context. Using a time series of returns over almost three decades, we examine alternative measures of codependence for the Indian equity market and a sample of global equity markets, gold and INR-USD....