What are your views on the raging active-vs-passive debate? Do you think that active funds, especially the large-cap ones, still have an investment case?
We believe it is time for passives to start forming part of the investor portfolio in India, but it’s not about either active or passive exposure; we think both active and passive need to be part of investors’ portfolios. An investor should continue to invest in an active fund with a good track record as well as take market exposure using ETFs to reduce the active risk and reduce the cost of his overall portfolio. We should not ask ‘active or passive’ but we should seek ‘active and passive’.
It is increasingly becoming difficult for large-cap fund managers to outperform the market indices like Nifty 50 on a consistent basis in recent times. We need to understand that it is the case with any major market and not specific to India. Over a period, as the market evolves and becomes efficient, the avenues for alpha shrink. However, we believe well-managed large-cap funds will continue to do well and there would be funds which would still make a good case for the core portfolio.
An investor needs to create a blended portfolio with active funds which they believe can beat the benchmark, along with low-cost market cap ETFs (so investors don’t run the risk of underperforming the benchmark significantly). At the end of the day, the goal of an investment is to create sustainable wealth with a combination of actively managed funds and ETFs.
What is the role of active and passive funds in one’s portfolio? Are there any benefits of having a mix of active and passive funds in one’s portfolio?
Continue reading your story on the app
Continue reading your story in the magazine
Cancel Your Beliefs
Unlike other stock recommendation services, Value Research Stock Advisor will return your money if you are not satisfied. Why do we do that?
Will A Merger Create Wealth For You? Here's How To Tell
The announcement of the merger between HDFC and HDFC Bank and a slew of other mergers and acquisitions in recent times have put spotlight on this space. In this cover story, we explain to you why mergers and acquisitions happen, how key M&As in the past have fared and how you can evaluate a merger. After reading this story, you will be able to understand the complexity of this process and decide what to do should your portfolio stock goes through a similar event.
Cold War II & Your Wealth
The second phase of the Cold War between the democratic and the authoritarian blocs will result in elevated inflation. Here’s how to protect your wealth.
The oil problem
Why have we not been able to solve it yet?
‘The litmus test for any M&A is long-term accretion to earnings and ROE'
NEELESH SURANA CIO, Mirae Asset Investment Managers (India) Pvt. Ltd.
Mitigating climate change
Reducing dependence on fossil fuels is the need of the hour but the world seems to be moving in the opposite direction
Busting Popular Macroeconomic Myths
Are rising rates bad for the market and is high inflation bad for quality stocks?
War And The Economy
The impact of the Russia-Ukraine war on the world economy
Your Investment Options In The Life-Insurance Space
As the LIC IPO approaches, here's how the three listed life insurers compare with each other
What you must know about LIC
LIC's IPO may hit the Street soon. Here are some facts and figures that will help you assess this insurance behemoth.
FOOD FOR Thought
All about food
THE TREE OF Life and Fertility
DR. V. RAMAKANTHA shares some insights into the science, history and mythology of the Banyan tree, also known as the Bengal Fig or Indian Fig. The Banyan is one of those mythical trees that has had an important place in the life and history of the people of India since ancient times. It is also home to many species of birds, animals, and epiphytic plants.
East Meets West
KALYANI ADUSUMILLI grew up in a minority group in the United States, straddling cultures, learning how to fit in, and later learning how to accept the traditions of her heritage. Today, she is watching her children going through the same process, shifting their cultural identity, as they head toward adulthood in the melting pot of a multicultural society.
NILANGANA BANERJEE: 2 series The 'Selves' | The Lullaby
The series Selves aims to artistically represent the psychological conflicts we face when we weigh ourselves based on socially determined of what is ideal and where we stand with the distorted and one-size that fits all defined.
Why We Are Not Responsible Toward the Environment
DR. ICHAK ADIZES is an expert in change management for organizations. Here he shares some of the reasons why companies are not changing their actions in relation to the environment, even though everyone knows we are facing an environmental crisis. He also offers simple solutions that will bring change.
Annadata Suraksha Abhiyaan
A tailor-made insurance initiative to financially secure farmers and growers against farming risks.
The FORCE Behind the FORCE
How George Lucas created Hollywood's most beloved franchise
EVERYTHING YOU NEED TO GET STARTED IN MAGNET FISHING
In addition to treasure hunting, magnet fishing has an environmental aspect-it helps to clean up our waterways.
Sorry, iPhone 6 Plus users, your phone probably can't be repaired anymore
Apple moves two older devices to 'vintage' status.
Self-Nurturing Through Nature
Secrets from a self-care sanctuary to help you find balance.