Is it time to move from active funds to index funds?
The answer is no. There will definitely be more space for index investing in your portfolio but that doesn’t mean you can ignore active funds. We’ll show you some numbers on Indian active funds’ ability to beat the indices currently.
It has been 7 years since SEBI came out with direct plans in mutual funds and a lot has happened during this period. At this time, how should an investor decide which plan to go for – direct or regular? What are the factors to consider? Srikanth Meenakshi distills 11 years of FinTech experience and working with investors to provide a roadmap.
As some categories of active funds in India such as large-cap funds, have struggled to beat the sprinting Nifty50 and Sensex30 in the last couple of years, there’s a surge of interest in index investing.
But are there risks in index investing that investors are ignoring? Read on to find out.
Recent developments in the telecom space holds the risk of pushing Vodafone’s debt instruments to junk/default status and a consequent erosion to NAVs of funds that hold the instrument. We tell you what funds are affected, and we recommend an exit on funds that have a significant holding in the instrument and suggest alternatives.
Performance data is clearly showing a declining trend for large-cap funds. Further, data and index behaviour shows that large-cap equity funds will continue to struggle to beat their benchmark convincingly. Selectively picking large-cap stocks directly or a passive strategy of holding large-cap index funds may become necessary
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