Page 2 - Passive Funds

AUM of domestic passive funds tracking Nifty indices tops Rs 5-trn mark

As of May 31, 2023, there are 251 passive funds tracking 101 unique Nifty indices

Sebi to issue MF light regulations for passive funds to ease compliance

Markets regulator Sebi will come out with a mutual fund light regulations for passive funds as part of efforts to reduce the compliance burden, foster growth as well as lower costs to investors, a senior official said on Friday. Passive funds is an investment vehicle that tracks a market index or a specific market segment. These funds include passive index funds, Exchange Traded Funds (ETFs), and Fund of Funds investing in ETFs. The regulator is looking to reduce compliance requirements for passive funds that are tied to changes in the underlying index and operate on a non-discretionary basis. To accommodate passive investments, such as index funds and ETFs, the regulator is introducing mutual fund light regulations, Sebi Whole Time Member Ananta Barua said. "These regulations will provide greater flexibility for index funds and ETFs, enabling them to offer transparency, diversification, and lower costs to investors. "By easing the compliance burden, Sebi aims to foster the growth

HNIs embracing passive funds on under-performance of active funds

High networth individuals (HNIs) are increasingly lapping up passive funds, with their exchange-traded fund asset base registering a 66 per cent growth to Rs 34,000 crore in 2022-23, according to a report on Tuesday. HNIs are informed investors, and hence, use platforms that allow direct investing in passive funds. Moreover, passive investments are comparatively more attractive than active investments owing to their ease of investing, better liquidity, and lower cost. According to a report by Motilal Oswal Financial Services, HNIs' ETF AUM rose to Rs 34,000 crore in FY23 from Rs 20,400 crore in FY22, indicating a surge of 66 per cent. It was at Rs 13,700 crore in 2020-21 and Rs 7,500 crore in 2019-20. Further, HNIs ETF AUM has witnessed a compound annual growth rate (CAGR) of 70 per cent over FY19-FY23. This has resulted in the share of passive AUM (ETFs and Index funds) in the overall asset under management (AUM) increasing to 16.5 per cent in March 2023 from 6 per cent in June ...

Increasing efficiency

Lower compliance will help expand the reach of passive funds

Unlocking Rs 100 trillion opportunity: What lies ahead for MF industry

The mutual fund industry is expanding distribution reach, simplifying products and leveraging technology in a bid to more than double assets under management

TMS Ep380: Rise of Jio, cyber security, consumer appliances, passive funds

What's behind Jio's rise to world's second strongest telecom brand? Will cyber security create jobs? Is it time to bet on consumer appliance stocks? What is a passive fund? All answers here

Navi Mutual Fund first to switch from active to passive ELSS fund

Becomes first fund house to shift from active to passive in ELSS

Three-fold growth in index fund AUM in 2022, ETF assets cross Rs 5 trn

Index fund growth led by debt schemes, with fund houses launching target maturity funds this year

Eight of 10 net SIP investments go into active equity schemes: Amfi data

Debt schemes account for 2% of the net inflows, passive schemes 8%

Sebi issues new norms for constitution, disclosure of passive funds

Exchange-traded funds group-level exposure will be capped at 25 per cent, says regulator.

Stick to passive funds in your core portfolio, say analysts

Investors who wish to chase alpha may use active funds and factor-based funds in the satellite portfolio

Shift to a diversified passive fund to survive fickle US market: Analysts

Besides growth-oriented active fund, add value-oriented fund to your portfolio

Diversified passive funds should form core of global investment portfolio

Exposure to mid-cap oriented and concentrated offerings should be taken later as part of exposure, say experts.

Passive fund assets could reach Rs 25 trillion by 2025, says Finity

In the last five years, the Indian passive fund assets have grown 18 times from just Rs 22,409 crore in March 2016, says the investment platform

Active large-cap funds outperform benchmarks as rally gets broad-based

Average one-year return at 48% versus Sensex's 45% gain

Flows into passive funds steal a March over active schemes in 2HFY21

Officials in the industry say since several large-cap funds have not been generating alpha, investors may be opting for passive funds instead

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

Sebi exempts fund managers from placing orders for passive trades

A fund manager can now authorise an AMC employee to place an order on his behalf provided the order instructions are through the electronic mode, including email, and audit trail is maintained

Passive assets more than triple in three years on steady PF inflows

But active investment still holds the edge among individual investors

Edelweiss's healthcare fund offers benefit of international diversification

Allocation to a thematic offering like the newly-launched healthcare index fund should, however, be limited