Active versus passive investing is an ongoing debate, and has gained prominence in recent times as active funds, especially in the large-cap category, have struggled to create alpha over passive funds in the same category. According to data from Value Research, currently there are 104 passive funds managing around ₹1.82 trillion worth of assets, as of October end. Despite the growing size of passive funds, they will co-exist with active funds, according to experts speaking at the Mint Money Conversation, presented by digibank by DBS, on 14 October. They said healthy competition between active and passive funds within categories should be encouraged going forward. Two, with a formula- or algo-driven approach, there will be funds that are a blend of active and passive investing.

Source: Mint October 18, 2020 16:30 UTC