Passive Funds

Investors are increasingly using index funds as long-term wealth-creation vehicles rather than for short tactical exposure, Oswal said

Once rebalance kicks in, passive money follows preset circuitry

Avoid need to chop and change funds due to underperformance; supplement with active funds in satellite portion

When it comes to passive products, 49% of distributors prefer offering both index funds and ETFs, 35% focus primarily on index funds, and 16% lean toward ETFs.

Zerodha Fund House has launched the Zerodha Nifty 50 ETF and Zerodha Nifty 50 Index Fund, open-ended schemes tracking the Nifty 50 Index-TRI

The Nifty 500 FlexiCap Quality 30 TRI allocates across different market capitalisations based on momentum, while focusing on companies meeting certain quality criteria

Zerodha Multi Asset Passive FoF is an open-ended fund of fund scheme investing in units of equity, debt index funds/ETFs and commodity ETFs

Be mindful that these funds do not have a track record, and changing market conditions can render a model obsolete

Motilal Oswal BSE 1000 Index Fund aims to provide returns that, before expenses, correspond to the total returns of the securities as represented by BSE 1000 Index

The recent moderation in SIP flows is largely a function of short-term sentiment, particularly in response to sharp corrections in small- and mid-cap segments, Rungta said

The investment objective of the Angel One Nifty 50 Index Fund is to replicate the Nifty 50 Index to provide returns before expenses that track the total return of the Nifty 50 Index

Capital markets regulator Sebi on Tuesday announced the launch of the Mutual Funds Lite (MF Lite) framework to simplify the compliance process for entities launching passively managed mutual fund schemes. The framework is designed to encourage new entrants, promote innovation, and foster investment diversification in the mutual fund industry. The Securities and Exchange Board of India (Sebi) said the MF Lite framework will apply to passive schemes, including index funds, exchange-traded funds (ETFs), funds of funds (FoFs), and others specified by the regulator. It intends to streamline processes and reduce barriers for entities focused solely on passive investment products, a move expected to increase market liquidity and ease entry for new players. The framework is based on recommendations made by a Sebi-constituted working group, which were later endorsed by the Mutual Funds Advisory Committee. The markets regulator amended its Mutual Funds Regulations 1996 to incorporate the MF

Among passive fund categories, sectoral funds are the top choice, according to the surveyed investors

Opt for passive funds to reduce fund manager risk and capitalise on their lower costs

Demand and supply factors have led to the preference for passive funds

Our newsletter this week tells you how to invest in passive funds and where to find luxury bedding

For other indices, the group-level exposure will be capped at 25 per cent

The financial regulator is looking to make it simpler for companies to launch low-cost index funds and similar investment products.

Retail investors tend to skew towards index funds, which have been gaining market share steadily over the past four years.

The Securities and Exchange Board of India (Sebi) will seek public comments on the proposals before finalising the rules, the sources said