Understanding PFIC rules for Indian mutual funds (US NRI)

I’m a US tax resident (NRI from India) trying to understand the PFIC implications of Indian mutual funds, and I want to make sure my mental model is correct before I rule them out entirely.

From what I understand:

• Most Indian mutual funds qualify as PFICs under US tax law
• PFIC taxation can mean:
  • Punitive tax rates
  • Interest charges
  • Complex annual filing (Form 8621)
• Even “plain vanilla” equity or index mutual funds in India fall under PFIC rules
• ETFs and stocks listed in the US do not have this issue

My questions:

1. Is it correct that almost all Indian mutual funds are PFICs, regardless of fund type?
2. Are there any realistic exceptions or structures that avoid PFIC treatment?
3. Do most US NRIs:
   • Avoid Indian mutual funds entirely?
   • Use US-domiciled ETFs instead?
   • Stick to bank products (FDs/RDs) despite lower returns?
4. Practically speaking, is the compliance + tax drag so bad that Indian mutual funds are just not worth it for US taxpayers?

I’m not asking for personal tax advice, just looking to validate my understanding and hear how others have approached this trade-off in practice.

Thanks in advance!