A majority of the smaller fund houses have steered clear of passive funds, even though their bigger associates are engaged in a pitched battle for dominance in the passive space.
Of the total 43 fund houses, 18 are yet to come out with an equity passive fund, including some mid-sized asset management companies (AMCs) like Canara Robeco and Parag Parikh Financial Advisory Services.
There are several reasons for this.
One, smaller AMCs are still focused on completing their bouquet of active offerings. Two, they do not see how they can make their products noticeable.
"We don't see a differentiator in the passive space. If there are already multiple Nifty50 or Nifty Next 50 funds out there, what is the point in coming out with the same offering? Inactive, you can be different, even if the fund category is the same," says G Pradeepkumar, chief executive officer, Union AMC.
This story is from the November 24, 2022 edition of Business Standard.
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This story is from the November 24, 2022 edition of Business Standard.
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