Active Funds

Short Call | When Option loans cost less than home loans, IRCTC goes up, and Sebi irks active funds

Foreign funds continue to buy aggressively and concerns about the rupee weakness is not a talking point right now. Mid and small caps are in the thick of action and every rise is converting more fence-sitters among HNIs into faithfuls

Passive investing gathers steam but retail investors get a meagre share

The inflows are predominantly from corporates, the Employees' Provident Fund Organisation, and high networth individuals.

Chart of the Day: Retail investors are outsmarting active fund managers

Investors are betting on low-cost passive investment funds that are giving them higher returns

Why stock holdings are likely to get concentrated going forward

With investors increasingly putting their money in index funds, the difference between the performance of the stocks in the index and those outside it will continue to widen

Index funds saw max. inflows in FY22-23, 83 percent of which was into target maturity funds

While it’s getting tougher for actively-managed funds, especially large-cap funds, to outperform their benchmarks, passively-managed equity funds have been slow to catch up. The real winner in this category is the Target Maturity Funds. But an encore in FY23-24 seems unlikely, though.

Is there a need to invest in multiple schemes of the same fund categories?

In the large-cap fund category, there is a lot of overlap between schemes, which is limited in midcap and specially small-cap funds.

Underperformance of active largecap funds widened in 2022

ELSS funds achieved the second-highest long-term survival rates across all categories in the SPIVA India Scorecard, with 77.8 percent of them still surviving after 10 years.

Edelweiss CEO Radhika Gupta has an index fund for her baby. Here's why

Radhika Gupta added that her own portfolio is 100 percent active funds.

Does size of mutual fund schemes matter?

There is no one right size or one definition of what a good corpus size is. Many variables impact the performance of a fund. A large fund may continue to do well even after it has become too large. Size is important if you choose to invest in a small-cap or a mid-cap fund.

Why do we still bother with active funds?

‘Manager vs Machine’ report finds that passive funds have fared better in choppy markets

Active mutual funds have an edge over passive funds in the long run

In developed markets like the US, 85% of the active managers underperformed the market in 2021. In fact, not only in 2021, but a Morningstar report suggests that over a 10-year period, only 25% of all active funds beat their passive counterparts in the US. In contrast, in India, on average the active manager has outperformed the benchmark.