Mutual funds: Why passive funds can be a great choice for retail investors to invest in 2025?
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1 week ago

Mutual funds: Why passive funds can be a great choice for retail investors to invest in 2025?

Live Mint  

If you are planning to invest in mutual funds this year, one of the dilemmas you may face is choosing between active and passive mutual funds. With the entry barrier for launching index mutual funds kept lower for passive schemes under this framework, retail investors are expected to find these schemes far more lucrative and tempting. They have brought in uniformity in regulations for passive schemes, it is quite a welcoming move for the first time investors,” says Sridharan S., a Sebi-registered investment advisor and founder of Wealth Ladder Direct. For the unversed, passive schemes refer to mutual funds that invest in the stocks in a pre-defined ratio and in accordance with pre-defined criteria, which is the same as that of a benchmark index. Given this high concentration of index funds that are expected to deliver returns on predictable lines, investors find these schemes quite tempting and investible.

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History of this topic

Equity mutual fund investments soar in December: SIPs hit record Rs 26,459 crore amid market volatility
1 hour, 53 minutes ago

Equity mutual fund investments soar in December: SIPs hit record Rs 26,459 crore amid market volatility

India TV News  

Equity mutual fund investments surged by a whopping 14 per cent to Rs 41,156 crore by December 2024, despite continued market volatility. Assets under management through SIPs amounted to Rs 13.63 lakh crore, nearly 20 per cent of the total AUM of the mutual fund industry. Total mutual fund assets are falling slightly As on December 31, 2024, mutual funds …

Direct vs Regular Mutual Funds: Why opting for a direct plan can help you save more
3 days, 7 hours ago

Direct vs Regular Mutual Funds: Why opting for a direct plan can help you save more

Live Mint  

If you want to invest in a mutual fund scheme, there are primarily two options. In a direct plan, investors can invest directly in a mutual fund by creating an account on the AMC website. Direct vs Regular mutual funds The key difference between the two forms of investing is that regular mutual fund investors stand to earn a higher …

Sebi introduces MF Lite framework for passive mutual funds
1 week, 2 days ago

Sebi introduces MF Lite framework for passive mutual funds

Live Mint  

Index and exchange-traded funds to schemes Passive funds that invest solely in domestic equity indices—widely tracked by passive funds or used as benchmarks for actively managed funds—will be eligible, provided their collective assets under management exceed ₹5,000 crore as of December 31 each year, according to the framework released by the Securities and Exchange Board of India on Tuesday. The …

Mutual Funds: Total asset size spikes 40% in a year, individuals own lion’s share as equity schemes turn favourites
2 weeks ago

Mutual Funds: Total asset size spikes 40% in a year, individuals own lion’s share as equity schemes turn favourites

Live Mint  

The total assets managed by the mutual fund industry jumped nearly 40 per cent in a year to ₹68.05 trillion in November 2024, a 39.59 per cent jump over November 2023, according to the latest data from the Association for Mutual Funds in India. Equity vs debt The data further reveals that the proportionate share of equity-oriented schemes was 59.7 …

2024 Review: Sectoral funds dominate as mutual fund AUM grows 38%, folios reach 22.08 crore
2 weeks, 6 days ago

2024 Review: Sectoral funds dominate as mutual fund AUM grows 38%, folios reach 22.08 crore

Live Mint  

The Indian mutual fund industry continued its growth trajectory in 2024, fueled by a steady rise in Indian equities that attracted retail investors, making mutual funds a preferred vehicle for wealth creation and long-term financial planning. In 2024, the mutual fund industry's Assets Under Management surpassed the ₹68 lakh crore milestone for the first time, reaching ₹68.08 lakh crore in …

Sebi notifies mutual fund lite regulations. Here is what you should know
3 weeks, 2 days ago

Sebi notifies mutual fund lite regulations. Here is what you should know

Live Mint  

The Securities and Exchange Board of India has notified Mutual Fund Lite regulations, allowing fund houses focussing only on passively managed schemes to get a licence with less stringent criteria. Net-worth criteria The MF Lite Regulations state that the minimum net-worth criteria for a mutual fund should be ₹35 crore. Business demerger The new rules even allow existing fund houses …

How a $500 billion haul has reignited passive controversy on the Wall Street
1 month ago

How a $500 billion haul has reignited passive controversy on the Wall Street

Hindustan Times  

The passive-investing juggernaut is picking up speed — and it’s stirring up fresh angst about the dangers posed by the index-tracking boom across Wall Street. With almost a month still to go in 2024, index funds have raked in some $500 billion in fresh cash, while their active counterparts are set for outflows. But two of Wall Street’s largest banks …

Retail Investors Prefer Index Funds, Folios Up 12 Times in 4 Years
5 months, 2 weeks ago

Retail Investors Prefer Index Funds, Folios Up 12 Times in 4 Years

Deccan Chronicle  

Mumbai: There has been a remarkable surge in the adoption of Index Funds among retail investors over the past few years. The total retail folios in index funds increased by close to 12 times from 4.95 lakhs in March 2020 to 59.37 lakhs in Dec 2023. The AUM of index funds has recorded an increase of 25 times from about …

Mutual Funds add Rs 2.3 lakh crore on market rally in June
5 months, 4 weeks ago

Mutual Funds add Rs 2.3 lakh crore on market rally in June

New Indian Express  

MUMBAI: Driven by the continuous inflows in to equity funds, especially through SIPs route, overall assets under management of mutual fund industry crossed the Rs 60 lakh crore milestone and touched Rs 61.16 trillion in June, over Rs 58.91 trillion in the previous month, on the back of a record 7% rally in the equity market. As per the industry …

Sebi imposes limits on passive mutual funds investing in sponsor group companies; details here
6 months ago

Sebi imposes limits on passive mutual funds investing in sponsor group companies; details here

Live Mint  

Capital market regulator Securities Exchange Board of India has released a circular to share the limits imposed on total investment which can be made by passive mutual funds in their sponsor group companies. This followed public consultations on the recommendations of the working group, and it was later decided to streamline the norm applicable to investments by passively managed mutual …

The Hindu Lit Fest 2024 | ‘Mutual funds give access to equity, debt and gold through one route,’ says Monika Halan
11 months, 3 weeks ago

The Hindu Lit Fest 2024 | ‘Mutual funds give access to equity, debt and gold through one route,’ says Monika Halan

The Hindu  

Mutual funds have grown hugely popular in India in recent times, with the size of assets under the management of mutual funds crossing the ₹50 lakh crore mark at the end of 2023. Monika Halan, author of Let’s Talk Mutual Funds, talks to The Hindu about why mutual funds should be part of the Indian investor’s portfolio, the risks involved …

Passive Funds Attracting Investors, Index Funds More Preferred Than ETFs: Survey
1 year, 5 months ago

Passive Funds Attracting Investors, Index Funds More Preferred Than ETFs: Survey

ABP News  

Passive funds have taken centre stage in India's mutual funds market in the past few years, increasing its market share over 17 per cent in 2023 from 1.4 per cent in 2015, according to a Motilal Oswal AMC survey released Tuesday. The survey conducted among 2,000 investors from around the country, showed that 61 per cent of investors have invested …

Passive funds gain traction among investors in India, market share witnesses growth: Study
1 year, 5 months ago

Passive funds gain traction among investors in India, market share witnesses growth: Study

India TV News  

A recent study revealed that passive funds have gained traction among investors in India in the last few years, capturing a market share of over 17 per cent of Assets Under Management in 2023 from 1.4 per cent in 2015. Low-cost nature of passive funds is biggest attraction According to the study by Motilal Oswal Asset Management Company, 61 per …

Mutual funds invest more than Rs 2,400 crore in equities in May
1 year, 6 months ago

Mutual funds invest more than Rs 2,400 crore in equities in May

India TV News  

New Delhi: After withdrawing capital from equities in April, mutual funds put in over Rs 2,400 crore in stocks last month, primarily due to robust GDP growth, controlled inflation levels, and balanced liquidity in the economy. "Stable GDP growth, low inflation, investor-friendly policies, and global market sentiments towards emerging economies play a significant role in attracting investments from both mutual …

Mutual funds: Confused between active and passive funds? Know here
1 year, 7 months ago

Mutual funds: Confused between active and passive funds? Know here

Live Mint  

Making an investment choice can sometimes be a tricky task for investors. Mutual funds: Active and passive funds To, put it simply actively managed funds aim to outperform their benchmark index by leveraging the expertise of professional fund managers, while passive funds seek to replicate the performance of a specific index. Performance of actively managed mutual funds vs passive funds …

Recent IPOs that mutual funds participated in
1 year, 11 months ago

Recent IPOs that mutual funds participated in

Live Mint  

In December, Mutual Funds deployed ₹147 bn and alongside foreign institutional investors sold ₹63 bn in the Indian secondary market, highlighted data analysed by domestic brokerage and research firm Edelweiss. After a dull period in the number of public issues in 2022, the last two months of the year witnessed many companies launching their initial share sales and debuting in …

What to consider before selecting an index fund
2 years, 2 months ago

What to consider before selecting an index fund

Live Mint  

Active and passive management are two distinct ways of managing portfolios. In India, the first index fund was offered in 2001, and since then index funds have come a long way. A not-so-sophisticated investor might be lured to an index fund whose return is higher than the index or other index funds. The key performance statistic for evaluating index funds …

Mutual funds assets rise to ₹39.88 lakh crore in September on higher inflows into SIPs: AMFI
2 years, 2 months ago

Mutual funds assets rise to ₹39.88 lakh crore in September on higher inflows into SIPs: AMFI

The Hindu  

Driven by inflows into Systematic Investment Plans, the mutual fund industry's total assets under management rose to ₹39.88 lakh crore in September from ₹36.73 lakh crore a year earlier. According to the latest monthly data from the Association of Mutual Funds in India released on Monday, the industry-wide net AUM stood at ₹38.42 lakh crore in September. The contribution of …

When It Comes to Mutual Fund Investments, Being 'Passive' Aggressive Often Pays; Here's Why
2 years, 4 months ago

When It Comes to Mutual Fund Investments, Being 'Passive' Aggressive Often Pays; Here's Why

News 18  

“An index fund is the most sensible equity investment for the general investors. By periodically and regularly investing in an index fund, even a know-nothing investor can outperform a seasoned investment professional.” Take it from investing legend Warren Buffet, who absolutely swears by these funds. As per S&P Dow Jones Indices 2021 annual SPIVA report, 80% of all actively managed …

Index funds a big draw as market volatility rises
2 years, 4 months ago

Index funds a big draw as market volatility rises

Deccan Chronicle  

Mumbai: In times of high market volatility retail investors are relying more on index funds and other exchange traded funds for putting their savings as these are cost effective compared to other mutual fund schemes and less risky than investing in individual stocks. The other schemes category saw net inflows worth Rs 41,226 crore in the first quarter of financial …

Passive funds set to get a fresh boost with SEBI’s new diktat
2 years, 7 months ago

Passive funds set to get a fresh boost with SEBI’s new diktat

Live Mint  

The passive fund industry got an impetus with the latest circular issued by capital markets regulator SEBI on May 23 that aims to promote passive funds. Increase in investors’ interest for index funds & ELSS: Fund Categories No of Schemes Net AUM April, 22 Net AUM April, 21 ELSS 39 1,46,077 1,25,377 Index funds 94 73,994 20,426 Gold ETFs 11 …

Nifty 50 ETFs’ AUM crosses ₹2 lakh crore
2 years, 8 months ago

Nifty 50 ETFs’ AUM crosses ₹2 lakh crore

Live Mint  

Assets under management of all the Exchange Traded Funds and Index Funds tracking Nifty 50 index in India crossed ₹2 lakh crore. Nifty 50 index-linked passive funds account for 40% share of ETFs' and Index Funds' AUM in India. Vikram Limaye, MD & CEO, NSE said, “This milestone achieved in the Indian passive funds industry is the culmination of efforts …

Invest in a combination of active and index funds instead of sticking to one
4 years, 3 months ago

Invest in a combination of active and index funds instead of sticking to one

Live Mint  

Comparisons between passively-managed index funds and actively-managed equity diversified active funds are common these days. The popularity of index funds and the inclination of investors towards these funds have increased not just because they are expected to outperform active funds in future, but also for their lower expense ratios. This has started reflecting in the percentage of active funds outperforming …

Coronavirus Lockdown, Weak Investor Sentiment Impact Mutual Funds' NFO
4 years, 7 months ago

Coronavirus Lockdown, Weak Investor Sentiment Impact Mutual Funds' NFO

News 18  

The number of proposals for new fund offers filed by mutual fund houses with markets regulator Sebi has been dwindling since past few months largely due to the nationwide lockdown and its impact on overall investor sentiment. Jimmy Patel, MD and CEO, Quantum Mutual Fund said the industry is grappling with fixed income funds facing redemption pressure last month and …

MFs garner over Rs 1 lakh cr in FY20 with big bets on SIPs amid broader market witnessed extreme volatility
4 years, 8 months ago

MFs garner over Rs 1 lakh cr in FY20 with big bets on SIPs amid broader market witnessed extreme volatility

Firstpost  

Investors are preferring SIP option for investing in mutual funds, as the industry garnered over Rs 1 lakh crore through this route in 2019-20, up 8 percent from the preceding fiscal, even as the broader market witnessed extreme volatility amid concerns over the impact of coronavirus pandemic New Delhi: Investors are preferring SIP option for investing in mutual funds, as …

Mutual funds add over ₹ 4 lakh cr to asset base in 2019, expects momentum to continue in new year
5 years ago

Mutual funds add over ₹ 4 lakh cr to asset base in 2019, expects momentum to continue in new year

India TV News  

Mutual funds have added a staggering over Rs 4 lakh crore to their asset base in 2019 and the industry expects the growth trajectory to continue in the new year on the back of strong inflows in debt schemes and measures taken by regulator Sebi for boosting investors' confidence. The asset under management of the industry rose by 18 per …

Passive mutual funds set to beat active funds for second year
5 years, 1 month ago

Passive mutual funds set to beat active funds for second year

Live Mint  

India's passive index-tracking equity mutual funds are set to beat their active stock-picking counterparts in returns for a second successive year as fund managers grapple with volatility and the challenges of outperforming benchmark indexes. According to Refinitiv Lipper data, India's passive mutual funds have delivered an average return of 9.6% so far this year, much higher than active funds' 5.7%. …

Investment in equity MFs drops 35% to ₹1.11 lakh crore in FY19
5 years, 9 months ago

Investment in equity MFs drops 35% to ₹1.11 lakh crore in FY19

Live Mint  

Investors pumped in more than ₹1.11 lakh crore in equity-oriented mutual fund schemes in 2018-19, a decline of 35 per cent compared to ₹1.71 lakh crore inflows in 2017-18, according to the industry data. "But despite that the current inflows of 1.11 lakh crore is a substantial investment by the mutual fund industry into the equities segment which is more …

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