 "Mutual Funds, funds, stock market trading")
Smart beta funds, which had seen a sharp rise in investor interest amid a slew of fund launches in 2023-24, have witnessed a decline in traction over the past year, with the formula-based schemes struggling to perform in a volatile market environment.
According to an analysis by DSP Mutual Fund (MF), the flows into smart beta funds, which has risen in recent years to about
9 per cent of the total equity MF flows in February 2025, is now down to less than 1 per cent.
These mutual fund (MF) schemes, often described as a middle ground between active and passive investing,
