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Let not the variety confuse you, keep your passive fund investments simple

With just three or four passive products, you can build a solid, long-term portfolio

AIF-II cheer as bank taps open
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Many stocks have low liquidity. This can result in high impact cost (which means that the price shoots up on large buying and moves down on large selling)

Sanjay Kumar Singh New Delhi
As markets evolve, active fund managers find it harder to beat the indices. When this happens, investors gravitate towards passive funds, which mimic an index. To prepare for that scenario, fund houses are launching a slew of passive products. Currently, the Securities and Exchange Board of India’s (Sebi) website shows that fund houses have applied for approval to launch eight passive products.

With such an avalanche of products, however, the lay investor can get confused regarding how to build his core portfolio using passive products.  

Building blocks of your core portfolio

On the large-cap side, there is growing consensus among

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First Published: Feb 19 2021 | 8:16 PM IST

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