Sebi overlap rules likely to push MFs to passive funds

Asset management companies (AMCs) may double down and innovate more on passive products following the revision of mutual fund categorization norms, offering investors a wider choice of investment options.

- Apoorva Ajith

Differentiation is mandated in same-category schemes.

(REUTER)

Passive funds typically track indexes and don’t require active management. While passive funds have been growing steadily in India, the new cap on portfolio overlap may catalyze greater innovation in such products and their growth.