India’s mutual fund landscape is steadily evolving, with passive investing emerging as a key trend. While active funds continue to dominate overall assets under management (AUM), passive funds — comprising ETFs and index funds — now account for around 21% of equity AUM. According to Anil Ghelani, Head of Passive Investments and Product at DSP
What exactly are passive funds? Simply put, passive funds, primarily index funds and Exchange Traded Funds (ETFs), aim to replicate the performance of a specific market index, like the Nifty50 or the Sensex. “Instead of a fund manager actively picking stocks, passive funds buy the same stocks in the same proportions as the index they
As Indian investors seek optimal strategies for wealth creation in 2025, the debate between active and passive mutual funds remains pivotal. Both approaches offer distinct advantages and challenges, influenced by market dynamics, regulatory shifts, and individual financial goals. In this article, we try to understand the strategies and how they can be beneficial for you.