Topic
Demystifying The Cost of
Passive Funds
Passive funds now account for roughly 10% of the overall AUM of the Indian mutual fund sector, with forecasts predicting a 37% increase by 2025. The AUM of passive funds was projected at $22 trillion in 2020, according to a BCG analysis on the worldwide asset mix of mutual funds, and is predicted to climb to $34 trillion in 2025. So how does the cost structure work in a passive fund?
Session Highlights
  • Impact of Expense Ratio on the cost of ETFs
  • Is there an exodus from active to passive funds?
  • The rising popularity of Passive funds
  • Power of compounding and how it increases returns in passive funds
  • Average difference in cost of ETF and active fund
  • Checking Total Expense Ratio before Investing in Passive Funds
  • Scope for Mid-cap and Small-cap segments to do well in Passive Funds
  • Impact of Tracking Error on the cost of Passive Funds
  • Is it time for investors to look at pure passive portfolios?
  • Factors to be kept in mind while selecting the right ETF or Index funds