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
But active investment still holds the edge among individual investors
Allocation to a thematic offering like the newly-launched healthcare index fund should, however, be limited
In this podcast, Business Standard's Sanjay Kumar Singh explains the difference between active and passive funds, why should an investor get into passive funds and more
The majority of active funds still outperform their benchmarks and passive funds don't have a long track record in these two segments
Fund houses have launched ETFs in both equity and debt segments
Experts favour passive funds up to 40% in core and a bunch of active funds in satellite portfolio
The next time you invest with a fund house do inquire if the portfolio manager has skin in the game
India's passive funds have delivered an average return of 9.6 per cent so far this year, much higher than active funds' 5.7 per cent
New launches within the passive-fund domain have made it possible to build a complete portfolio out of such products
Indian investors don't understand smart-beta products yet, says Neeraj Choksi
The recent regulatory changes have made it difficult for actively-managed large-cap funds to beat the benchmark consistently in the long-term