Why were passive funds investor favourites in 2021?
Jan 14, 04:01

Like 2020, passive fund categories were the favourites of new investors in 2021 as well. Among equity schemes, index funds and equity ETFs drew the most number of investors last year, industry body AMFI's data shows. Experts believe that the underperformance of actively-managed, large-cap funds against the better show of large-cap indices pushed investors towards passively-managed funds. Also, there was a slew of passive-fund NFOs. Other categories such as technology and infrastructure-focused funds, mid and small-cap funds were preferred bets for young investors, since these categories had delivered market beating returns over the last few years.

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