'Investors using index funds for long-term wealth creation'

Passive investing in India is moving into the mainstream, and strategic gold-silver allocations can enhance portfolio returns, says Pratik Oswal, chief of passive business at Motilal Oswal Asset Management Company. In an email interview with Devanshu Singla, he explains how passive funds will play a bigger role in retirement planning, why mid and smallcaps look attractive over the long term, and how gold-silver allocation can improve risk-adjusted returns. Edited excerpts:

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What is your overall outlook on passive investing in India over the next few years? = Passive investing in India is moving from early adoption to mainstream acceptance.

Investors are increasingly valuing transparency, low costs, and the predictability of index-based outcomes.

With broader product offerings across equity, factors, and commodities, passive solutions are becoming core building blocks in portfolios. Over the next one to two years, we expect steady, structural growth driven by both retail systematic investment plans (SIPs) and institutional participation.

Will 2026 belong to passive-style investing, or will active fund management fare better?