In September, passive mutual funds added more new accounts than active equity funds — a first for India’s retail investors
Gold and silver ETFs led the surge. Together, they added about 1 million new accounts as investors sought paperless, safe assets
Passive schemes saw 1.2 million new accounts — 2.1 million including FoFs — while active equity funds added 1.4 million
For years, higher commissions kept investors in active funds. But now, retail investors seem more aware of passive advantages
In mature markets, most retail money goes into index funds and ETFs. India’s investors may be following that global pattern
Tracking an index cuts costs and risk. Data worldwide shows few active funds beat benchmarks — a lesson Indian investors now heed